Research from ezyCollect shows that most overdue invoices are paid by the third reminder. The supplier must typically request payment twice before an invoice is paid. In the digital age, outstanding invoice reminders are usually sent by email and SMS.
With the right format, tone and timing, your reminders for due and overdue invoices can be very powerful. Done well, your reminders become a great support tool for your customers’ payables team. Suppliers who use ezyCollect report that their customers thank them for sending helpful payment reminders!
Remember, your reminder is a communication from your business and is a great opportunity to represent your professionalism and enhance your customer relationship.
Our tips below will help your customers with unpaid invoices to understand their debt and respond promptly to your requests for payment.
Download more free AR resources and templates
The right way to write overdue invoice email reminders
Email continues to be a universal and popular mode of communication to reach overdue customers. But simply sending an outstanding invoice email doesn’t mean your customer will open it. While emails are relatively cheap—and automation makes the cost per email even cheaper—an ineffective email (or series of emails) is a waste of time and money.
Make it easier for your customer to respond to your AR follow up emails:
- Mobile optimise
Today, more than half of all emails are read on mobile devices. 72 percent of people delete emails that don’t look good on mobiles; 22 per cent unsubscribe (2016 Adestra Consumer Adoption and Usage Study). - Personalise
Your ‘from’ address and sign-off should include names your customer will recognise. Your salutation to your customer should also be personalised e.g. ‘Dear Sam, …’ - Target
Research the right person in your customer’s business to receive your reminder emails. Copy in their manager and your manager as debtors reach your danger zone for default (in ezyCollect we call these Red Zone customers i.e. any business over 60 days overdue). - Subject lines
Brief is best. Use action words such ‘Please review’ or ‘Please action’. Tell your customer exactly what your email is about so they are compelled to open it. (Try testing different subject lines to see which ones get the best response rates.) - Oldest overdue invoice
Rather than communicate individually about every invoice, communicate about the entire account. This means that you will consolidate all overdue invoices into each reminder, and the oldest overdue invoice will be the priority (See our template below.) - Content
Keep this concise. Use bullet points and short paragraphs. Marketing specialists, Hubspot, report “nothing boosts opens and clicks as well as an old school, plain-text email.” i.e. choose plain text over HTML for your reminders. - Be polite
Often, your customer has simply overlooked your invoice, resulting in overdue payments. Don’t jeopardise your relationship unnecessarily by starting with harsh language. Reply to completed payments with a thank you email. - Include attachments
Add the overdue invoice to your reminder email, or if there are many, consolidate them into one table in the body of the email and then add copies of the invoices as attachments. - Schedule a series of emails
One reminder email may not be enough to generate a payment. Still, you don’t want to bombard your customer’s inbox daily. Plan a schedule of emails that will reach your customer over time. When intermixed with other modes of communication, e.g. SMS messages. More than one reminder is very effective. Subsequent emails should reference your agreed terms and conditions e.g. ‘As agreed in our terms and conditions, we will be placing your account on credit hold…’ - Proofread
Check spelling and grammar, tone, URL links, and make sure any default template copy is removed. - Reach every overdue customer
If you’re issuing large numbers of invoices, it’s almost impossible to reach every customer without significant labour investment, or automation. Still, customers can easily slip under the radar if you don’t follow-up on the invoices that become overdue. - Send on the right day
If you know your customer’s payment schedule e.g. end of month, it’s a good idea to send your reminder email in time. Don’t send on a Friday if their office hours are Monday to Thursday. - Include clear calls to action
‘Please pay immediately’ is pretty clear. Provide a name and number should your customer needs to contact someone in your business to discuss their overdue invoices. - Make it easy to action
Add a ‘Pay Now’ button—that leads to your online payments portal. Your customer is one click away from paying off their overdue invoices, and you receive payments easily.
Templates for overdue invoice reminder email
Overdue invoice reminder email template 1
Subject: Reminder: Your account from <your company name> is overdue
Dear <Customer name>,
I hope you are well. A friendly reminder that our trading terms are <payment terms in days>.
Your oldest overdue invoice is now <number of days> days overdue.
The total amount overdue is <total amount overdue>. The table below summaries all overdues.
<table of overdue invoices>
I have attached invoice copies for your reference.
We would appreciate immediate payment.
We welcome your payment by the following methods:
<include all payment methods>
To pay via credit card, please click the Pay Now button below:
<Pay Now button>
Please contact us immediately for any queries about your account.
Kind regards,
<Contact name, email, phone number>
(Note: If using ezyCollect’s automated payment reminders, you can set up your email templates with drag-and-drop merge fields like ‘total amount overdue’, an ‘overdue invoice table’, and a ‘Pay Now’ button for online payments. The system collates all relevant information for you.)
Overdue invoice reminder email template 2
Dear [Client Name],
I hope this letter finds you well. I am writing to follow up on the overdue invoice sent to you on [date of invoice].
According to our records, the payment for the aforementioned invoice is now [number of days] past due, with a total overdue amount of <insert total amount>.
As a valued client, we understand that situations may cause a delay in payment. However, we request that you settle this outstanding balance as soon as possible.
We offer various payment methods to make the process as convenient as possible for you, including:
<include all payment methods>
You can also pay via credit card by clicking on the Pay Now button below:
<Pay Now button>.
If there is an issue with the invoice, please let us know so we can address it immediately. If you have already made the payment, please ignore this letter.
We value our business relationship with you and look forward to continuing to work with you. Thank you for your prompt attention to this matter.
Sincerely,
<Contact Name>
<Email Address>
<Phone Number>
<Your Company Name>
Templates for overdue invoice reminder SMS
Template 1 for overdue invoice SMS reminder
SMS messages are also an effective way to send reminders for unpaid invoices. Your SMS reminder will be much shorter than your email reminder. You have much less ‘real estate’ to work with!
- Use SMS for bulletin or alert style messages.
- Be brief and to the point.
- No salutation required.
- Keep characters to around 200.
- Preview your message to ensure the reader doesn’t need to scroll too far.
- Add a ‘Pay Now’ link so customers can seamlessly pay you from SMS
Template 2 for overdue invoice SMS reminder
Hi [Customer Name], this is a friendly reminder that your invoice #[invoice number] is now [number of days] days overdue. Please settle the outstanding balance as soon as possible. If you have any questions or concerns, please get in touch with us at [phone number]. Thank you.
Key points:
- Credit managers rely on overdue invoice reminders to reign in late payments.
- Your customers rely on your helpful reminders about overdue invoices.
- Get the tone, content and format of your reminders right so you can generate a prompt payment or invite a payment discussion.
- A best practice overdue reminder email or SMS template is a crucial tool in your business.
FAQs
How do you politely remind an unpaid invoice?
In today’s digital age, businesses remind their customers of unpaid ivoices through email and SMS. These communication channels are not only efficient, they’re also effective when using the right tone and timing. Think about the human factor when when reminding unpaid invoices so you can set the tone for a polite and interactive communication. Genuine concern for your customers come across your message and this will be the key for an impactful reminder.How do I write a gentle payment reminder message?
Often, your customer has simply overlooked your invoice, resulting in overdue payments. Don’t jeopardise your relationship unnecessarily by starting with harsh language. When writing an email reminder it’s important to ensure your emails can also be read on mobile format and that all important information (e.g. amount overdue and due date) are inclued in the message. Personalising your emails by addressing it to the person’s name ensures your message is reached by the right people and that a connection can be established. Don’t forget to also be brief but clear with your subject line to address urgency of the message. The same rules of polite tone and personalisation is applicable when writing SMS reminders. However, SMS are shorter messages so keep in mind to be succint and include the most important information in your message – around 200 characters is the optimal length for your message to be delivered efficiently and read clearly.For more templates and AR resources, download ezyCollect’s toolkit of free resources:
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