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Any small-business owner, manager, or sole proprietor has encountered late payments and the need to send a payment reminder email to clients. Efficiently managing outstanding invoices and payment reminders helps you save time and maintain cash flow, ensuring clients pay promptly.
But not all payment reminder messages are created equal. Some messages will get you paid faster than others – without compromising customer relationships. When writing a payment reminder email, it’s essential to be clear and concise while including a few key details in the subject line and body of your message.
In this article we’ll give you tips on how to write a professional payment reminder message to a client and how you can avoid late payments in the first place, along with payment reminder email templates you can use at different times.
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What is a payment reminder message?
A payment reminder message is an email or text message sent to a client to remind them to pay an invoice.
Whether you send a friendly heads-up on the day an invoice is due or a note when a payment is late, these messages can help you stay on top of client payments so you can receive funds promptly.
A payment reminder message should include a few key details, such as a copy of the original invoice as well as the total amount due and the original payment due date. It should also make it easy for the client to process the payment by listing accepted payment methods and including a link where they can conveniently pay online.
Tips for writing an effective payment reminder email
Ready to receive payments faster while remaining courteous? Here are a few things you should include in your invoice reminder email.
Include the invoice number and due date in the email subject line.
Draft a clear subject line with the invoice number and payment date, so that the recipient won’t overlook it in their inbox. This approach also ensures the recipient quickly identifies their account details. Additionally, including the due date in your first email gives them a quick reminder of how long they have until they would incur any late fees.
Reattach the payment invoice.
Your client may have simply misplaced or accidentally deleted the first invoice from their inbox. Make it easier for them by reattaching the invoice to each email sent. This also will serve as a payment reminder for the services provided and the amount owed.
Keep the copy short and professional but with a friendly tone.
It’s critical to show empathy in the first payment reminder message you send. Remember that your client could have simply forgotten to pay or had every intention to pay but got busy in their lives. Avoid statements that could come off as cold or pushy, such as “You need to pay by XX date.” Instead, say, ‘Payment is due by XX date,’ remaining polite in your messaging.
Stay friendly in your phrasing to maintain good client relationships. If you are sending a payment reminder email for an overdue invoice, set a firm but equally respectful tone by including how far overdue the invoice is within the subject line.
Include ways to send the payment and what the payment terms are.
Make it clear and easy for the client to pay the invoice. Include a link to facilitate prompt payments. If you use digital invoices, explain how they can pay online and give step-by-step instructions. Also don’t let any late fees be a surprise for your client. For each payment reminder email, detail what the payment terms are and what the late fees will be if the payment is overdue.
When to send payment reminder emails and messages
There are key times at which you can send payment reminders that will alert your client and highlight that you pay attention to your outstanding accounts receivable: one week before the due date, on the day the invoice is due, one week later, two weeks later and one month later if the invoice still hasn’t been paid.
With Square Invoices, you can create customized reminder messages and send automated emails. For example, you can use one email template right after sending a client an invoice and another one for overdue payments. Not only does this feature provide clarity to your clients in terms of amounts due and payment dates, but it also allows you to automate your invoicing workflow and save time.
How to send payment reminder emails and messages
If you’re wondering how to send a payment reminder message, email is a standard channel – but it’s also one that makes invoices easier to miss on the client side. For effective communication, consider utilizing both email and SMS for payment reminders. This helps avoid situations like a client overlooking a payment reminder during an extra-busy week.
Polite and effective payment reminder email templates
When it comes to sending payment reminder emails, there is no need to reinvent the wheel. Using tried-and-tested professional templates will take the guesswork out of asking a client for payment. You can use the following email templates in different scenarios and even set up automatic reminders with them.
Payment reminder template: Before the due date
These emails should be scheduled up front after providing your client with the initial invoice. Here is an example of this type of email:
Subject line: Invoice #123 Reminder/Follow Up - Payment Date Approaching
Hello client name,
We hope you’re doing well! We want to ensure that all accounts are accurately maintained. This is a friendly payment reminder email that invoice #123, which was sent on March 20, will be due next week. When you have a chance, please look over the invoice and let us know if you have any questions. This payment reminder email is important for maintaining a positive relationship with your clients. The original invoice is attached for your convenience.
You may pay by cheque, by credit card, or online through our payment link. If you need anything before then, please don’t hesitate to reach out. Our service team is available to help with any questions you may have.
Thank you,
Your name and business information
Payment reminder template: Day-of
This payment reminder is the most important, as it tells them that this is the last day to pay before they incur late fees. Make sure that this payment reminder email is firm but still warm in tone since the payment is not yet past due. Here is an example of this type of email:
Subject line: Invoice #123 is due today
Reminder message:
Hello client name,
The payment reminder message intends to prompt timely action from you.
This is a reminder that invoice #123, which you should have received on March 20, is due today. You may pay by cheque, by credit card, or online through our payment link. Using our service, you can pay easily through multiple options.
*Please let us know if you have any questions or need help with the payment process.
Thank you,
Your name and business information
Payment reminder emails for overdue invoices
If the payment remains unpaid, you can send weekly payment reminders via email, text, or SMS to ensure that your client submits their payment. Send a reminder message on the same day every week to keep the client informed of their overdue account status. In these messages, your tone should be firm and polite, reiterating the different terms and any fees or interest charge incurred for being late.
Here are examples of these types of emails:
Payment reminder template: One week late
Subject line: Payment — Invoice #123 is one week overdue
Reminder message:
Hello client name,
Our records show that we are still awaiting payment of $8,000 for invoice #123, which was initially sent on March 20. A copy of the original invoice has been attached for your convenience in the instance that it has been lost or misplaced.
If the payment has been sent, please disregard this notice. We encourage prompt verification of receipt. Please let us know if you have any questions or need assistance with the payment process.
Thank you,
Your name and business information
Payment reminder template: Two weeks late
Subject line: Payment Invoice #123 is Two Weeks Overdue
Reminder message:
Hello client name,
This is our fourth reminder message for the payment of $8,000 in regard to outstanding invoice #123, which was initially sent on March 20. A late fee of 10% will be applied to the total if the invoice remains unpaid as of April 20.
A copy of the original invoice has been attached for your convenience in the instance that it has been lost or misplaced. Please confirm receipt of the invoice and this email. Ensuring you received this email will prevent any miscommunication.
Thank you,
*Your name and business information
Payment reminder template: One month late
Subject line: Final Notice: Payment Invoice #123 from March 20 — Please Submit Payment ASAP
Reminder message:
Hello client name,
This is our final reminder email for the payment of $8,000 in regard to outstanding invoice #123, which was initially sent on March 20, prior to late fees being applied. A late fee of 10% will be added as referenced in our payment terms.
A copy of the original invoice has been attached for your convenience in the instance that it has been lost or misplaced. Please confirm receipt of the invoice and submit payment as soon as possible.
Thank you,
Your name and business information
Confirm receipt of service as soon as possible for account accuracy.
If your client is still not responding to your payment reminder emails, it’s time to use alternative communication methods. Mail them a paper copy of their invoice if necessary. Including a personalized note can increase response rates.
How to avoid late payments and improve timely payments in the first place
While overdue invoices can sometimes be unavoidable, there are a few ways to ensure timely payments and make the entire process easier for both you and your clients.
Set clear payment terms from the start to encourage prompt payments. Include the due date on the original invoice and any fees that your client will incur if it’s paid late.
Also, automating your payment invoice reminders is a great way to gently nudge your clients to submit their payments.
When you build an invoice in your Square Dashboard, you’ll have the option to schedule email reminder messages at specific intervals. Under the Communication section of your invoice, you’ll see the “Edit reminders” option. Click there to set up automatic reminders that can be sent a custom number of days before the due date, on the due date or after the due date.
Each reminder you set has an optional message field, in which you can type a note to your client. You can set up to five reminders in this section. Once you’ve drafted your reminder dates and messages, click “Save” for those reminders to be sent on your timeline or until the invoice is paid.
If you still find that clients either miss the reminders or often pay late, you may want to offer incentives for early payments to avoid the struggle of tracking down those clients in the future.
Why your payment reminder email isn’t effective
If your payment reminder emails don’t get clients to pay overdue invoices, it may be because the reminder was sent to the wrong email address or they prefer other forms of communication. We all know those people who have 10,000 unread emails in their inboxes. Most times an unpaid invoice isn’t a personal slight; it’s simply because the client is disorganized or has forgotten.
Remember to craft payment reminder emails with understanding and keep your tone polite. Offer your clients several easy and simple ways to submit payment while alleviating any additional stress they may experience when paying their bills. A friendly reminder can often encourage timely payments. Sending an email to confirm you received payment is also a good idea.
What you should do if an invoice is less than 90 days late or more than 90 days late
Unfortunately, the longer an invoice or payment reminder goes unpaid, the less likely it becomes that a client will submit a payment. If you’ve used these templates to send your payment reminder emails and the invoice is still unpaid, it may be time to use a debt collection agency. Let the client know that if the invoice is not paid, the collection agency will be getting in touch with them. This notice from the collection agency will follow official procedures. This could serve as enough motivation for your client to pay.
However, if this does not work, it may be a matter that needs to be taken to court. Of course, this route must make sense for you depending on the amount of the overdue invoice and whether court costs and litigation will be worthwhile to your business.
Outstanding and unpaid invoices create unwanted challenges for all business owners and managers. Good communication can mitigate issues before collections become necessary. With these tips, templates, and Square automated invoice reminders, you can take some of the stress off your shoulders and remain professional when you ask for client payments.