How to write a past due invoice email: templates and best practices
Why did the invoice cross the road? To get to the ‘paid’ side!
It’s might be an old joke, but okay, we get it — overdue payments are something that no one makes jokes about. But there are ways to deal with them with some fun and some strategy. Writing a due invoice email does not need to feel like watching paint dry or being on the lookout for the punchline that never comes. In the right situation, it is possible to remind the clients to clear their dues without appearing too hassly. We will go on to see how overdue invoice emails can be written in such a way that they tempt the borrowers to write out those checks looking for the proper place. Because hey — even when your invoice is stuck on the wrong side of the road, adventure awaits and it’s time to make it cross into your bank account as soon as you say “pay”.
Why following up on past due invoices is important?
Late payments can have a significant effect on your business's financial health. When customers fail to pay on time, it has a direct impact on your cash flow, limiting growth and making it challenging to meet everyday operational expenses. You might find yourself struggling to pay your own suppliers and vendors, potentially incurring late fees and damaging relationships with those who expect timely payments from you.
Also, such shortages of working capital don’t let buisnesses look for other opportunities, such as switching to new projects and buying new equipment. In extreme instances, companies may resort to borrowing to finance the deficit, thus adding more liabilities and creating investor unwillingness to participate. Besides, a business owner defaulting payments for credit facilities on several occasions tends to erode financial rating making it difficult to get funds with ease in the near future.
Timely follow ups and payment reminder emails let your clients know how highly you regard your work and that no one is doing it for free. This helps to create a level of professionalism in all your business relationships hence preventing unnecessary delays. More importantly, quick follow ups help to clear up any complaints or issues and have payment made faster.
Key elements of a strong past due invoice email
When crafting an overdue invoice email, it's crucial to include elements that make it both personal and effective. A well-structured email can increase your chances of getting paid on time while maintaining a positive relationship with your clients. Let's explore the essential components that make up an effective past due invoice email.
Subject line best practices
Your subject line is a determining factor in whether recipients open or ignore your emails as it attracts the recipient and addresses the content of the email. Therefore to prepare a subject line for your overdue invoice email, the following best practices should be considered:
Be straightforward: with an email subject, phrases such as “overdue invoice,” “past due” or ‘unsettled invoice’ should be used to reassure the reader of the purpose in due invoice email.
Include the invoice number: with a payment reminder, this helps the recipient as it enables them to be able to know the exact invoice in question fast.
Add your company name: if you are writing from personal and non-corporate addresses then your company name is in the barriers of understanding the context.
Use the word "reminder" or an equivalent: in an email subject, this softens the tone while still conveying urgency.
For example, a good subject line might be: "Gentle Reminder: Invoice #12345 Overdue for Payment"
Call-to-action strategies
Apart from the email subject, a well written call-to-action (CTA) can increase the likelihood of pay without any further delay. Solid CTAs have been provided for overdue invoices email:
Be specific: make it clear what action the reader should take next.
Create urgency: ask the reader to get this done immediately or define what could happen if the payment is not made.
Offer options: provide multiple ways for the client to respond or make a payment.
Use visual cues: Incorporate font styling to make the CTA bold or different in color.
Some effective CTA phrases for overdue invoice emails include:
"Please make your payment by [specific date]"
"Click here to pay your invoice now"
"Contact us to discuss payment options"
"Settle your due invoice email today to avoid late fees"
Bear in mind that there is a necessity to stimulate the action, however enough polite to stay professional. Following these worthwhile recommendations while sending the due invoice email, you will be rewarded with improved prayers and cooperation with customers.
Body content must-haves
Most borrowers are reluctant to pay overdue invoices and this discourages most subscribers. The concern here is not only about the payment of the overdue invoice but about the whole scope of the mortgage. At any rate, in most cases, the body of this due invoice email should be brief, precise, and concise in that all relevant and necessary actions are taken to resolve the issue at hand. Here are the components that one should include.
Greeting: address the client in the opening line through a salutation containing the client’s name.Opening statement: start with soft words concerning the overdue payment.
Invoice details: the invoice number, the amount outstanding, the actual date of payment expected and the actual number of days overdue.
Payment options: indicate what actions the client may take in order to pay the owed amount. Include information about accepting payments through websites, checks, or bank transfers or other payment options, so that the client will not have restrictions while making the payment.
Late fee: if there are any late fees already assessed or that will come into effect if payment is not done on or before the due date, mention them here.
Next steps: specify what will occur if the payment is not paid, for instance account blocking or sending the matter to a debt recovery agency.
Contact information: share your contact details where the client can reach you in case he has any queries or would like to discuss payment methods.
Striking the balance between firmness and politeness
Finding the right tone is important in sending an email for unpaid invoices. You have to be expressive enough but not aggressive to the client. Open with using a friendly salutation addressing the client by name in order to make it personal. Next let them be aware of why you are calling them by indicating the invoice number, the amount owed and the deadline.
For instance: “Hi [Client’s Name], I hope everything is alright with you. I am writing to you about Invoice #12345, in the amount of 500 USD, whose settlement period has expired on the [Due Date].”
As you move ahead in your due invoice email sequence, start making your emails more urgent but still professional. In the initial payment reminder email, express an emotional tone. In later communication about the payment adoption, use a logical expression and get straight to the point without sounding rude.
Best practices for past due writing of invoice email
It is critical to be particular while composing an email for a past due invoice so that your client maintains trust in your business while still being reminded in such a manner that payment will still be made. In case you ever find the need to approach your customer in a delicate manner still, these best practices will enable you to get paid without sacrificing the work relationships you have developed.
Setting the right tone for payment reminders
In regards to overdue invoice email templates, the danger of being too assertive with the payment reminder request vs. the danger of too cordial a request that may put off the customer calls for an evaluation of the communication. Ideally, do not be rude or come off as professional in your very first calls. Be polite and cordial to the customers while explaining the problem. As time passes and the dues are still not settled, persistence in communications is encouraged still, political correctness is essential.
Do not forget to forget any and every detail that needs to be mentioned in your payment reminder email, such as the invoice number, amount due, and invoice dated due. Payment terms and payment options must be very clearly stated as to include the due amount and penalties that may be imposed after the given date. Making such additional efforts can also enable the clients to clear their outstanding balance as fast as possible.
Establishing a consistent follow-up schedule
The problem of overdue invoices can be properly handled only by designing a proper accounts receivable structure. When dealing with follow-up for late invoice payments, however, it’s very important that there is consistency. Once that the first reminder is sent out, allow for a rhythm to develop wherein there are regular follow-ups until payment is received. One action weekly at a minimum should be taken so that the order is met and the trust of the customer that such a process has been properly done is confirmed.
Leveraging multiple communication channels
It is best not to depend on email communication to issue reminders. In order to enhance your recovery prospects and avoid sending a final notice, try to be more proactive than just sending emails with reminders. Say you have sent the e-mail reminder without receiving the payment, make a phone call. After the phone conversation, send a short follow-up email regarding the discussion. In case you don’t receive any response using these options, you can mail a due invoice email on paper. Such letters are usually understood by members of the finance team; they don’t have a choice but to open and read them.
Implementing early payment incentives
Offering early payment discounts can motivate customers to settle their invoices as soon as possible. Consider providing a static discount, such as 2% off if paid within 10 days instead of the standard 30-day terms. Alternatively, you could offer a sliding scale discount that adjusts based on when the invoice is paid. Early payment incentives can lead to quicker payments, stronger cash flow, and increased customer loyalty.
Customizing your approach based on client history
Make a note of how every delayed payment invoice email you will send, will differ from the other based on the client - be it email subject or contents. These details include how likely the clients are to pay up, how frequent or rare the clients are and most importantly, how close you are to them.
In the case of long time customers who have habitually settled their payments correctly, a simple communication may do the trick. With regards to customers who have a record of paying the invoice late, an arrogant tone may come in handy supported with the necessary details of imposition of late payment penalties or other consequences of failure to make the pay.
Staff should communicate clearly how payment should be made and offer diverse payment options or a payment plan option to enable clients to clear their balance. Include a url for payment or wire transfer details so that the clients will be able to send their payments through the bank without any delays.
Do not forget to include a specific request, for example “Please click here to make your payment”, and offer a phone number or email address referring to complain, queries or anything related to that. This strategy makes it evident that you are not at all unwilling to accommodate the client in order to settle the issue in relation to due invoice email.
When to escalate to legal action
While legal action should be a last resort, there may be situations where it becomes necessary. Before pursuing this route, carefully weigh the costs and potential outcomes. Generally, it's advisable to avoid legal proceedings for amounts less than $250,000, as the expenses and stress involved may outweigh the benefits. Instead, focus on negotiation, mediation, or other alternative dispute resolution methods to resolve paying the invoice issues without resorting to litigation.
Email sequence for different stages
In order for one to be able to manage cash efficiently, creating a good unpaid invoice email sequence remains very important. Different clients respond differently based on how much an invoice is overdue, and each group needs their own invoicing email templates.
30-day overdue template
When an invoice remains unpaid for thirty days, it’s likely best practice to issue friendly yet firm unpaid invoice emails. In this case, an email should be polite and straight to the point with regard to the problem at hand. Here is a template for the email you can consider:
Subject: Reminder: Invoice #[Number] is 30 days overdue
Dear [Client Name],
This is a friendly payment reminder email to highlight that your payment for Invoice #[Number], amounting to [Amount], is now 30 days past due. We value your business and would appreciate your prompt attention to this matter.
To settle your account, please use one of the following payment options: [List payment methods]
If you have any questions or need to discuss your account, please contact us at [Your contact details].
Thank you for your immediate attention to this matter.
Best regards,
[Your Name]
60-day overdue template
The day has come when the invoices are 60 days overdue and you have to deal with the client from a different perspective. There should be a sense of urgency emanating from your overdue email, reminding the client the need to follow your policy. Use this format:
Subject: Urgent: Invoice #[Number] is 60 days overdue
Dear [Client Name],
We're reaching out regarding Invoice #[Number] for [Amount], which is now 60 days past due. This matter requires your immediate attention.
As per our terms and conditions, we may need to assess additional late payment fees if payment is not received promptly. To avoid this, please remit payment using one of these options: [List payment methods]
If you're experiencing difficulties, we're open to discussing a payment plan. Please contact us to explore this option.
We look forward to resolving this matter quickly.
Sincerely,
[Your Name]
90-day overdue template
It is common practice that once 90 days has passed since the invoices overdue, suitable management steps have to be taken. Usually, your email should remind the client how many times you have attempted to collect the debt and also highlight what will happen if the debt is not paid. Here is a possible template:
Subject: Final Notice: Invoice #[Number] is 90 days overdue
Dear [Client Name],
This is our final notice regarding Invoice #[Number] for [Amount], which is now 90 days overdue. Despite our previous attempts to contact you, we have not received payment.
To resolve this matter, please remit payment as soon as possible using one of these methods: [List payment methods]
If we do not receive payment within [number of days], we may have to take further action, including referring your account to a collection agency.
We value our business relationship and hope to resolve this issue promptly. Please contact us immediately to discuss this matter, or set up a payment plan.
Regards,
[Your Name]
How to automate past due invoice emails
Sending out due invoice emails on time automatically has been found to ease collection of accounts receivable and reduce the time taken to clear invoices from over-due accounts. It is worth noting that the use of most invoice softwares comes with many merits such as quick completion, fewer mistakes, and enhanced transparency. Great benefits are offered by Enty - your go-to solution for automating invoice creation and management, helping you streamline everything from customizable designs and multi-currency support to auto-applied VAT and recurring invoices. Whether you need to send the invoice or due invoice email to counterparties, track payments, or mark them as completed, Enty makes the process seamless and error-free. Automating tasks like these not only helps you avoid human errors but also drastically reduces the time it takes to manage invoices, which is crucial when dealing with due invoice emails. Plus, with other services like Finances and contract management, Enty ensures your business stays on track, even when dealing with overdue invoices. By simplifying invoice management and offering a suite of additional tools, Enty helps you maintain transparency, efficiency, and focus on how to get paid quickly.
Common mistakes to avoid in past due invoice emails
In overdue invoice emails, there are various flaws people make that are counter productive to the effort of sending the emails. One mistake people often make is waiting too long to follow up on the initial invoice. The chances of collecting funds from a client are extremely high when a reminder due invoice emails are sent immediately after the appointed past due date has lapsed.
Dealing with unresponsive clients
If after sending out emails and making calls, clients still remain unresponsive, it is time to be a bit forceful. Offer a deadline by which service will be discontinued to apply pressure, or send a final notice. Politely ask for payment within a certain period and keep reminding the customer until they pay, or even introduce a late fee. Make sure you do not come off as being aggressive, rather, make sure you are persistent.
Handling disputes and disagreements
When there is a need for due invoice email, pay attention to the client’s voice and try to comprehend their viewpoint. Compile various supportive materials such as contracts or email correspondence to clear any ambiguities. Do not hesitate to openly discuss and offer other alternatives such as changing the payment strategy and allowing a longer time frame for settling the balance to reduce the problem.
Navigating cultural differences in international transactions
It is very difficult to collect debts from foreign clients because of the language barrier and differences in culture. To overcome these obstacles, work with local partners who understand the cultural norms and practices of the countries you are dealing with. Adjust your strategies in collecting the debts based on the characteristics of the culture, as some may prefer employing a more tactful approach and some a straightforward one.
As you all know, there are cases where customers are reluctant to pay overdue invoices or where there are many hours of communication regarding overdue invoices. Please, do not refrain from addressing the client professionally, clearly explaining what should be done and providing different methods of payment to facilitate this processing.
Final thoughts
Sure, getting paid is the ultimate goal, but writing an effective due invoice email is about so much more. It's about maintaining the integrity of your client relationships, showing that you value professionalism, and ensuring that your business runs like a well-oiled machine. With the tips and strategies in this guide, you now have the tools to send emails that aren’t just about payment—they’re about fostering long-term trust and respect. Remember, every interaction is a chance to reinforce your business values. So, while overdue payments are a hassle, your approach to handling them can turn an uncomfortable situation into an opportunity for growth, both financially and relationally.
