In a business or organization, the main aim is to sell products or services. The seller or company will expect payment from their client or customer after they have delivered their products or services to them. When such a client or customer delays making payment, a seller or company can send them a payment reminder email.
A payment reminder email is an email crafted and sent by a seller or company to their client or customer to remind them of the payment they are supposed to make, especially if the invoice is overdue.
This is a document written to the customer reminding them to pay an overdue invoice that they owe the company. Whereas there is a legal process that ensures your company gets paid what it is owed, writing a letter to your customer first has proved to be a quicker and easier way you could get paid. It is friendlier as well. Sometimes the customer may have forgotten about the due date of the payment and a letter of reminder gives them that benefit of the doubt.
Most companies or sellers choose to send such emails when the due date is approaching, and their customer is yet to make payments. A payment reminder email is also appropriate once the due date has passed, and no payments have been made. It is important to remind a client about the payment to ensure the business maintains a steady flow of money for more success.
When to Send It ?
A company or seller can prepare a schedule that allows them to know when to send a payment reminder email to their customers who have delayed in making payments. The seller can send it in three intervals before they choose to take other actions. A 30-day, 60-day and 90-day plan after the due date has been missed is the best way to schedule when to send the reminder email.
For a 30-day plan, a seller should write and send an email that aims to maintain a positive relationship with the client but still gently reminds them of the payment.
For a 60-day plan, the email should be professional and the tone should not be friendly as the 30-day plan one. The email should be written in a firm tone with an aim of reminding the client that it is necessary and urgent for them to make the payment. The seller can also indicate in the email how late the payment is.
For the 90-day plan, the email should clearly indicate the seller’s frustration of waiting for payment that the client is not likely to make. Therefore, this payment reminder email can act as a warning or notice from the seller to the client about upcoming legal actions. For instance, a company or seller can inform the client that after a particular number of days and no payment has been made; a collection agency will contact them to collect the payment.
Things to be Included in the Payment Reminder Email
There are important details that a company or seller must include in the payment reminder email before sending it to their customers. Here is a guide on how best to craft and write this type of email.
In the subject line, the individual seller or company should write their details in the subject line as they are the senders of the email. Also, they should briefly include the issue being discussed in the email and that is a payment reminder.
(Name of company): Payment Reminder for Invoice # (Invoice number)
(Name of the seller): Reminder for Payment for Invoice # (Invoice number)
For the salutation part of the email, the seller should indicate the title or name of the client (recipient) who is being requested to make payments for the overdue invoice.
Dear Albert Oreo,
The body paragraphs of the email contain the following information:
- Mention the reason: Get straight to the point by telling the receiver of the late payment. Remind them exactly what it is they have not paid for, and the amount. State the date the payment was due.
- Attach bills and enter bill details: Just under the first paragraph, attach all the bills owed and explain the details of that bill. This will help the customer to understand more about the payment.
In the second paragraph explain how important it is for the company that the receiver pays the money. If it’s a second or third reminder, be strictly professional but assertive, stating how urgent the matter is, and if it’s a final reminder, refer to the previous letters and the date which they were written, asking for payment. Tell the customer of the consequences should they fail to make the payment. Be as clear as you can of these consequences so the customer is fully aware of what is to come.
NOTE: If it’s the first reminder, be as polite and friendly as possible, but professional. Do not assume intentional nonpayment, imagine that they just forgot or are having complications with bank transfers. The letter is a reminder, do not to make any accusations.
- Mention extra fee for late payments- this information is mostly found in the second paragraph and should highlight the fees that the customer will pay if they do not make payments and the due date has passed. It is best if the seller indicates the total amount payable in case of a delay after indicating, in digits, the amount on the invoice and the extra fees for late payment.
For example: Ensure you make payments for the invoice by 15th August, failure to which, you will have to pay an extra fee of $20. With the current invoice, that means that you will not only pay $200 expected as per the invoice but also an extra $20, a total of $220.
- Include payment details and due date- for the last paragraph of the email, the company or seller should include a copy of the invoice, link to online payment options , payment details like the bank details, method of payment and the due date or deadline for the payment.
For example: Attached is the copy of the invoice that indicates the amount you are supposed to pay. Please send the payment to the following bank account (indicate the bank account details, that is, name and number). The due date for the payment is 15th August.
- The closing statement: This is the last paragraph where you state again why it is important for the customer to pay what he or she owes to the company. Remain professional and go ahead and even apologize for any inconvenience caused. The most important part here is your official name and signature to make the letter official and therefore should be taken seriously.
Close and sign
For the last part of the email, the company or seller should complete their email with a positive tone and sign off with their name for official purposes.
Here are a few sample letters for better understanding:
A Professional and Brief Sample For Payment Reminder Email
The sender’s name
The senders’ title in the company
The company’s name
The company’s address
State, City, Zipcode
The date that the letter was written
The name of the person the letter is being addressed to
Address of the person the letter is being addressed to
State, City, and the Zip code of the person the letter is being addressed to
Re: The First Reminder of Late payment
Dear (Receivers name)
This is a letter to notify you that the payment you owe, of (amount of money) was due on (date). Please submit the payment by cashier’s check along with your account number. Attached is a copy of the invoice with the amount due stated. Enclosed is also a stamped and addressed envelope should you need it.
If you have already made the payment, please ignore this letter. But if you have not yet made the payment, please do so immediately.
Thank you for making this matter a priority. Sorry for any inconvenience we might have caused.
List of the enclosed documents.
Sample for Payment Reminder Email
the subject of the email:
Invoice for an account number (36572) due today
Hi (Receivers name)
This is to remind you that the payment of an invoice for an account number (36572) is due today. The total amount is ($6400). Please make your payments to the account number specified on the invoice.
Attached is a copy of the invoice. If you have any questions concerning the same, I will be happy to answer.
Using Payment Reminder Letter/Email Templates
Tips to Write Payments Reminder Email
There are tips that a seller or company can observe for them to craft a proper payment reminder email for their customers or clients. These tips include:
Follow up at the right time
To avoid being a nuisance to the client or customer, it is best for the company or seller to know when the right time would be to follow up on their payments. This will make sure that the seller does not bother their clients who might not have forgotten about the payment due date.
Some of the ways to ensure that a seller follows up the payments at the right time include:
- Send the payment reminder email the next day after the due date if the client usually pays on time and has delayed this time around.
- Send the email within one to two weeks if the client is new or usually pays on time.
- Send a payment reminder email in a 30, 60, 90 day interval after the due date.
- It is also a wise idea to send an email during the weekend to increase the chances of the email being seen since the client is probably not busy.
- Try to send the email on Tuesdays or Thursdays before or after lunch since these periods are consider the best time to send out an email.
- Send these payment reminder emails at once, if dealing with several late customers to save time.
For slightly overdue payments
At times the invoice might be overdue but only slightly, like for one day. This means that it is best to include a phrase like “for your convenience” when crafting the email to avoid sounding inconsiderable.
When writing a payment reminder email, the company or seller should write it in a polite and positive tone. Although the demand for payment should be firm, one should always maintain politeness. This is because the company will still want to maintain its customers even after the slight business mishap.
Speak directly to the client
Apart from writing an email to remind the customers about the payments, it is also wise to call and talk to them directly. By speaking to the clients directly, the company is sure that they are aware of the delay and the terms of payments.
Notify about legal considerations
In the email, it is also a good idea to notify the customers about any legal considerations that the company or seller is planning to take. This is best done if several emails have been sent and the customer has not yet made the payments.
Warn about extra fee
Another important tip that a seller should observe is to inform and warn the customers about the extra fees in case the payment is delayed. The warning can be included in the email that is sent when the due date is approaching. This will help to prompt payments from their customers without delay.
Use checklist while composing the letter
Here is a quick checklist for you. Follow the list to trace either you have mentioned all the essentials in the letter or not:
- The company’s name and address
- The recipient’s name and address
- The date the letter is being written
- Reference of the letter. Include the account number
- State the amount owed
- Indicate that the payment has not yet been received
- Give payment methods available
- Avail yourself to the receiver in case he/she would want to contact you for any questions and clarifications.
- Thank him and I apologize for any inconvenience caused.
- Sign with the senders’ name
It is challenging to ask customers for money once they delay making payments. However, there is an easier way around this, and companies are advised to craft and send payment reminder emails. These emails ensure that a seller can politely remind the customer about the overdue invoice either when the due date is approaching or has been passed. A seller or company should consider all the elements that need to be included in the email to ensure they prepare a proper email. Also, the tips on how to write a proper email will serve an important purpose in helping the seller or company get their payments.