How to Write a Useful Payment Reminder - Tips and Templates

Running a business successfully is not a piece of cake, as there are several unpleasant aspects that you need to manage. Chasing clients for unpaid invoices is the most thrilling task that one business faces sooner or later. Thankfully, with a payment reminder, you can inform and prompt the client to pay the remaining bills on time.

With invoices paid on time, a business can gain better revenue and growth. Now, you may be wondering how to approach a client for the outstanding bills, how much leeway you should give your client, when to escalate your payment request, and more.

Keep going with this article, as here we come up with effective tips to write a professional payment reminder to your clients, along with templates to avoid late payments.

What Is a Payment Reminder

Before getting into depth, just know exactly what a payment reminder is, for a better understanding. A payment reminder is a written notification given by a company to their client if their payment is overdue or not paid. Typically, it is sent through email, SMS, letter, or post that simply reminds the customer to pay the amount agreed to pay on the invoice.

Furthermore, a professional payment reminder should always include some fundamental details. The details or information depends upon the relationship of a company with its clients or the contract type.

The company's name, contract details, total balance, due date, and attached invoice are the vital details that should be in a payment reminder. Additional deeds could also be added, such as interest rate, receipt, accepted payment methods, and more.

Tips to Make an Effective Payment Reminder

Here are effective tips for writing a perfect payment reminder so that you'll end up getting paid.

Be Professional

Professionalism matters a lot in every field and when you're writing a payment reminder, be professional. A bombardment of messages can make your clients frustrated; hence, follow up with a professional way to ask your clients for the payments. Show empathy in your first reminder, and make sure the mail you send is branded.

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Remember that your client may have the intention to pay but got busy, so start with a polite introduction. For example, avoid pushy or mild statements such as "You need to pay on this date." You can simply write, "Your payment due date is this." It works and shows professionalism.

Include Every Detail of the Invoice

In this step, you need to make sure that the payment reminder covers everything on the invoice. It is essential for timely payment from the client.

The legal name of the company, legal name of client, address of the customer, invoice number and date, customer's number, due date of invoice, balance amount, date of email/letter/SMS you sent, overdue amount, services/products you provided and contract details should be included in the payment reminder. Communicate with a professional tone as businesslike.

Write a Clear Subject Line

The subject line is the first thing that a recipient notices, so make sure to use a descriptive and clear subject line in the payment reminder. A clear subject line eliminates the chances of skipping the email by mistake.

Draft a subject line comprehending all the invoice details, e.g., invoice number and due date, so that the recipient won't open the mailbox and get an instant look at the whole thing mentioned in the inbox.

An additional tip, it's great to write the first reminder, second reminder, and more for a precise follow-up, as it's possible that the debtor will delay the payment reminder.

Keep the Copy Brief & Straightforward

Long and over-detailed mails are often trashy as there's no sense in filling out many pages or writing endless mail. As we said above, using a professional tone and showing empathy is vital, so don't lose control over the mail and write a brief message in the payment reminder. Keep your copy straightforward and simply inform them of the due date, as no one is going to read your lengthy letter.

Reattach the Copy of the Invoice

When you're sending a payment reminder to your client, don't forget to reattach the invoice to the mail. It's possible that the customer could misplace or accidentally delete the invoice from their inbox. So, attaching an invoice to the mail makes the payment process simple and smooth. Plus, it also informs the client about the services and their amount.

Elaborate on the Payment Terms & Outcomes

Usually, payment reminders in the first place are sent to the clients to not impose a penalty on them and get the payment on time. But after mapping out a payment reminder strategy, if the client wouldn't be willing to pay, it's essential to tell them the consequences of late payment and not paying.

Put the consequences clearly in the payment reminder so that the customer easily expects the outcomes. For example, you will charge interest on the outstanding amount, will take legal Action, and hand over the case to the payment collection agency.

Provide Convenient Payment Methods

Payment reminders are sent with the purpose of inclining the customers to pay on time. You can make this process more efficient and quick by adding a variety of payment methods to the mail. You can also provide a payment link, and it can be a great solution for both client and you. So, don't forget to provide convenient payment options to your customers for easy clearance.  

Use Advanced Tools to Schedule Emails

If you haven't mapped out the period reminders, automated payment reminders are the best solution to nudge your customers. This way, you can maintain the consistency of your messages, and it's better than a mass mailing. You can use advanced tools or automated scheduling systems with a follow-up procedure. This will remind the client of payment without bombarding the messages or making them frustrated.

4 Free Payment Reminder Templates

Now you get how to write an appropriate payment reminder so let's take a short glance at the templates to ease your work!

Payment Reminder Before One Week Of Due-Date

Subject Line: Company's name with invoice xxxx | Date

Body:

Hello (Client name),

I hope you're doing well! This is just a reminder that the payment of XXXX (payment amount) for invoice XXXX (invoice number) is due on XXXX (date).

For your reference, I have attached the invoice here (invoice link). You can make the payment using the link as well as via credit card.

Please review the invoice once and let me know if you have any queries.

Warm regards,

(Sender's name)

(Name and details of the company)

Payment Reminder On Due-Date

Subject Line: Company's name with invoice XXXX due today | Action required

Body:

Hello (Client name),

I hope you're doing well! This is a friendly reminder to inform you that your payment of XXXX (payment amount) is due today. I have reattached the invoice for your reference. You can pay through payment link, bank transfer, credit card, and PayPal at your convenience.

Feel free to reach out to me with any concerns.

Warm regards,

(Sender's name)

(Name and details of the company)

Payment Reminder After A Week of the Due Date

Subject Line: Company's name with invoice XXXX is a week overdue | Action required

Body:

Hello (Client name),

I hope you're doing great! I'm writing this mail to inform you that your invoice XXXX sent on (dated a week ago) is a week overdue. We're concerned about whether you've received the invoice or not. I have reattached the invoice here for your convenience.

I request you immediately make the payment before escalating the matter. If you've already made the payment, please disregard this mail.

Warm regards,

(Sender's name)

(Name and details of the company)

Payment Reminder After 30 Days of the Due Date

Subject Line: Company's name| Immediate Action required, invoice XXXX is a month overdue

Body:

Hello (Client name),

I have mailed you a couple of times, but the outstanding payment of XXXX (payment amount) for invoice number XXXX is still not paid. This is my final call, and if I don't get the payment by (date), I will have to take the required actions.

I've reattached the invoice and payment link for your convenience. Kindly reach out to me if you have any questions or concerns.

Warm regards,

(Sender's name)

(Name and details of the company)

Bottom Line

Sending payment reminders is a great business practice to push clients to pay the outstanding bill. While sending the payment reminders, be sure that the client is getting all the necessary details to make an easy payment.

Furthermore, be professional and understand the scenarios of not paying the bill without putting pressure on them. With the help of the aforementioned tips, you can easily convince your debtor to pay the bill on time. Ultimately, it will build a good relationship and boost your business sales.