Running a business successfully is not a piece of cake as there are several unpleasant aspects that you have to manage. Chasing customers for unpaid invoices is one of the most vexing problems businesses face sooner or later. Fortunately, A payment reminderyou can inform and order the customer to pay the remaining bills on time.
With invoices paid on time, a business can have better revenue and growth. Now you may be wondering how to approach the customer for outstanding bills, how much leeway you should give your customer when you increase your payment request, and more.
Keep reading this article, as here we offer effective tips for writing professional payment reminders to your clients, as well as templates to avoid late payments.
What is a payment reminder?
Before we dive in, just know what a payment reminder is for a better understanding. A payment reminder is a written notice given by a company to its customer if their payment is overdue or unpaid. It is usually sent via email, SMS, letter or post, which simply reminds the customer to pay the amount agreed to be paid on the invoice.
Furthermore, a professional payment reminder should always include some basic details. The details or information depends on the company’s relationship with its customers or the type of contract.
Company name, contract details, total balance, due date and attached invoice are vital details that should be included in the payment reminder. Additional documents such as interest rate, receipt, accepted payment methods, etc. can also be added.
Tips for making an effective payment reminder
Here are some effective tips for writing the perfect payment reminder so you get paid eventually.
Be professional
Professionalism is important in every industry, and when writing a payment reminder, be professional. A bombardment of messages can frustrate your customers. therefore, follow up with a professional way of asking your clients for payment. Be empathetic in your first reminder and make sure the email you send is branded.
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Remember that your customer may have the intention of paying but has been busy, so start with a polite introduction. For example, avoid pushy or soft statements such as “You must pay by this date.” You can simply write, “Your due date is this.” It works and shows professionalism.
Include all invoice details
In this step, you need to make sure that the payment reminder covers everything on the invoice. It is important to get timely payment from the client.
Company’s legal name, customer’s legal name, customer’s address, invoice number and date, customer number, invoice due date, balance amount, date of email/letter/SMS you sent, overdue amount, services/goods provided and contract details must be included payment reminder. Communicate in a professional tone like business.
Write a clear subject line
The subject line is the first thing a recipient will notice, so be sure to use a descriptive and clear subject line in your payment reminder. A clear subject line eliminates the chances of accidentally skipping an email.
Design a subject line that captures all the details of the invoice, such as the invoice number and due date, so the recipient doesn’t open the mailbox and immediately see everything listed in the inbox.
Extra tip, it’s great to write down the first reminder, second reminder, and more to track exactly, because it’s possible that the debtor will delay the payment reminder.
Keep the copy short and simple
Long and overly detailed emails are often pointless because there is no point in filling multiple pages or writing endless emails. As we said above, using a professional tone and showing empathy are vital, so don’t lose control of the mail and write a short message in the payment reminder. Keep your copy simple and just let them know the deadline because no one is going to read your long letter.
Attach a copy of the invoice again
When do you send a? payment reminder to your customer, don’t forget to re-attach the invoice to the mail. It’s possible that the customer installed it incorrectly or accidentally deleted the account from their inbox. So attaching an invoice to the post makes the payment process simple and smooth. In addition, it also informs the customer about the services and their amount.
Detail payment terms and results
Usually, payment reminders are sent to customers first to avoid penalty and to receive payment on time. But after developing a payment reminder strategy, if the customer doesn’t want to pay, it’s important to tell them about late payment and the consequences of not paying.
Make the consequences clear in the payment reminder so that the customer can easily expect results. For example, you will charge interest on the outstanding amount, take legal action and turn the case over to a collection agency.
Provide convenient payment methods
Payment reminders are sent to encourage customers to pay on time. You can make this process more efficient and faster by adding different payment methods to the post. You can also provide a payment link and this can be a great solution for both the customer and you. So, don’t forget to provide convenient payment options to your customers for easy checkout.
Use Advanced Tools to schedule email
If you have not scheduled period reminders, automated payment reminders are the best solution to push your customers. So you can keep your messages consistent and it’s better than mass mailing. You can use advanced tools or automated scheduling systems with the following procedure. This will remind the customer about the payment without bombarding them with messages or frustrating them.
4 free payment reminder templates
Now you understand how to write a proper payment reminder, so let’s take a look at some templates to make your job easier.
Payment reminder up to one week before payment due date
Subject lineCompany name on invoice xxxx |: Date:
Body:
Hello (customer name),
I hope you are doing well. This is just a reminder that payment of XXXX (payment amount) to XXXX (invoice number) is due on XXXX (date).
I have attached the invoice here (link to invoice) for your information. You can make the payment via the link, as well as by credit card.
Please review the invoice once and let me know if you have any questions.
Warm wishes,
(Name of Sender)
(Company name and details)
Payment reminder within the specified period
Subject lineCompany name XXXX invoiced today Action required
Body:
Hello (customer name),
I hope you are doing well. This is a friendly reminder to let you know that your XXXX (payment amount) payment is due today. I have attached the invoice again for your reference. You can pay via payment link, bank transfer, credit card and PayPal at your convenience.
Feel free to contact me with any concerns.
Warm wishes,
(Name of Sender)
(Company name and details)
Payment reminder one week after due date
Subject lineCompany name on invoice XXXX is one week overdue Action required
Body:
Hello (customer name),
Hope you are doing great! I am writing this letter to inform you that your XXXX bill was sent (one week ago) one week overdue. We are concerned whether you have received the invoice or not. I have re-attached the invoice for your convenience.
I request that you make the payment immediately before escalating the matter. If you have already made a payment, please ignore this email.
Warm wishes,
(Name of Sender)
(Company name and details)
Payment reminder 30 days after payment due date
Subject lineName of the company Immediate action required, invoice for XXXX is one month overdue
Body:
Hello (customer name),
I have emailed you several times, but the outstanding payment of XXXX (payment amount) for invoice XXXX has not yet been paid. This is my last call and if I do not receive payment by (date) I must take the required action.
I have re-attached the invoice and payment link for your convenience. Please contact me if you have any questions or concerns.
Warm wishes,
(Name of Sender)
(Company name and details)
Bottom line
Send payment reminders great business practice to motivate customers to pay an outstanding bill. When sending payment reminders, make sure the customer gets all the details they need to make an easy payment.
Moreover, be professional and understand the non-payment scenarios without pressuring them. With the above tips, you can easily convince your debtor to pay the bill on time. Ultimately, it will build good relationships and boost sales for your business.