Are you a business that often gets late payments?💳 and doesn’t know how to deal with it effectively?
Don’t worry! You are not alone 🤝. Around half of the invoices in the US goes overdue and business are required to send the payment reminders 📝.
To create more urgency and get timely payment, payment reminder messages and emails are used 📱. A study shows that SMS messages alone can improve repayment rates by 7- 9% 📈! Effective messages and email templates can help you get your customer back on the payment track.
So, in this blog, let’s talk about the ways to write payment reminder messages, payment reminder templates for both messages and emails 📱📧, common challenges 🤔, and best practices 📚
🔑KEY HIGHLIGHTS:
- Common reasons for late payments are lack of cash, forgetfulness, technical problems, unclear records, and received invoice claims.
- A formal payment reminder text template includes, invoice number, due date with an internal link for the payment.
- Payment reminder email must start with a precise subject and formal greetings, including information of invoice, due date and paying method.
- Payment reminder messages are sent when the due date is near or overdue to grab the client’s attention and help them clear outstanding payments.
- Including invoices in all messages, being precise, and mentioning important dates can increase the effectiveness of payment reminder messages.
5 Payment reminder text template you can customize & use
Nowadays, the ratio of late payments has grown, which is why businesses should often send payment reminder texts to their clients. Also, payment reminders from SMS notifications are quite easy to access and help clients remember their due payments.
Below are 5 payment reminder SMS formats:
Friendly approach for payment reminder
👉“Hi [Client Name], I would like to inform you that you’ll have to pay your invoice [#] from [Date] coming next week. To settle your balance, check out [URL]. Thank you for attending to this matter promptly.”
Friendly reminder for Due date payment
👉 “Dear [Client Name], Just a friendly reminder: it’s time to pay for Invoice [#]. Kindly visit [URL] and clear the bill using your credit card or eCheck. Should you have any queries, feel free to ask.”
Late payment reminder message sample
👉 Hi [Client Name], Your [ $ amount ] payment for invoice [#] is overdue by two weeks. I would like your consent to review the invoice and submit a payment at [ URL].
Follow up payment reminder message
👉Hello[Client Name]. This is a reminder that we still haven’t received [$ amount] payment of invoice[#1] yet. It was due[Date], and extra fees will be applied if the payment is not made by [Date].
Final payment reminder short message
👉 Hi [ Client Name]. This is the final reminder for your overdue invoice payment [#]. We request you settle the payments immediately to avoid any further actions.
Common reason for late payment
There could be multiple reasons for making a payment late. Meanwhile, 61% of people say it’s because they lack money to cover the costs. Another main reason is that they forget their undue invoices.
Some of the common reasons for late payments are:
- Cash shortage: Cash flow issues are one of the major reasons for late payments. In this situation, the company may not have enough money to pay its bills when they are due.
- Forgetting: Late payments are often caused by forgetfulness, and many Americans fail to make their payments because they forget to do so. According to a WalletHub survey, this has happened to 45% of all people in the US.
- Unreceived invoice claims: A frequent reason for late payments is when customers don’t receive the invoice or lose it. Traditional mail invoices can get lost during transportation or overlooked at the destination. On the other hand, email invoices may end up in spam, which is why they require a fee reminder message.
- Technical issues: Technical issues can also lead to late payments. When customers encounter technological errors or obstacles while trying to make payments, they often delay the process. This delay, combined with forgetfulness, can result in even longer payment times.
- Unclear records: Sometimes, the person who approves an invoice may not be the original person who purchased the product or service from you. As a result, they may lack familiarity with the transaction, leading to requests for further explanation or clarification, which can prolong the payment process.
5 Payment reminder email template
It is quite common for payments to become overdue. Around half of all invoices in the US become overdue. You can use emails to remind your clients, attach your invoices, and provide all the payment methods to remind customers to pay bills on time. This encourages your clients to start the payment process.
Below are five payment reminder email templates that you can adopt:
Friendly payment reminder email for upcoming due template
When sending a first email, you should remember to be friendly and provide a gentle reminder. Since the payment due date is yet to come, clients are not at risk for an overdue invoice. You can start with the example given below.
Example
Subject: Remainder for upcoming payment.
Body:
Hi, [ Client name],
Hope you are doing well. This email is to remind you that your Invoice [#] payment is due next week on [Date].
I have attached it below for your reference. Please take a look at this invoice when you get a chance, and feel free to contact me if there are any issues or questions.
Thank you for being cooperative,
[company’s or sender’s name]
Due-day payment reminder email template
When the customer invoice due date occurs, you should maintain a friendly tone while sending follow-up emails. You can directly get to the point and, at last, leave the payment method, which will allow the client to complete their payment on the same day and with less hassle.
Example
When the customer invoice due date occurs, you should maintain a friendly tone while sending follow-up emails. You can directly get to the point and, at last, leave the payment method, which will allow the client to complete their payment on the same day and with less hassle.
Subject: invoice [#] due date is today.
Body:
Hi [ Client Name],
This is a payment reminder for your invoice [#], which was sent to you on [Date]. It is due today, and you can pay it through a credit card or from the payment link on the invoice.
For any questions and assistance regarding the invoice payment, please feel free to contact to this email by replying.
Thank you for your time,
[company’s name or sender’s name]
Late payment reminder email template
You need to make your overdue payment reminder more formal than previous ones, where you sent reminders with due dates. Try to sound more professional and avoid using phrases like “ you haven’t paid,” which will make it sound like you are blaming the client. Be formal and follow the example below.
Example
Subject: Invoice [#] is one week overdue
Body:
Dear[ Client Name],
We have found that the [$ amount] payment for Invoice [#] is due in one week. Please review the invoice we sent you on [Date]. We have attached a copy of the invoice for your convenience.
If the payment has already been made by you, we apologize for this notice. Please contact us for any questions or assistance in the payment process.
Thank you for your concern,
[Company’s or Sender’s name]
Following up late payment reminder email template
If you still haven’t received the payment. You must be direct but formal about the overdue invoices and payment methods. Also, mention if extra late payment fees will start to apply. Be precise and ask for a response in a good tone to extract the client’s attention and make him take action.
Example
Subject: Invoice [#] has been two weeks overdue
Body:
Hi [Client Name],
This email is to make you remind that we haven’t yet received the [$ amount] payment of invoice [#] that we sent you on [Date]. It is two weeks overdue from today. In case the invoice still remains unpaid till [Date], an extra late fee of [ percentage%] ($ amount) will be applied.
We have attached a copy of your outstanding invoice to make it easy to clear it. Please respond to this email to confirm receipt of the invoice and this reminder email.
Thank you,
[ Company’s or Sender’s Name]
A final late payment reminder email template
If it’s been more than a week and the client is not responding, you must be precise and mention that this email is the last. If the client doesn’t respond or pay the unpaid invoices after this, some action could be taken.
Example
Subject: Final email for unpaid invoice [#]
Body:
Hi [ Client Name],
This is the fifth time we have communicated about [$ amount] payment of invoice [#], which was sent to you on [Date] and is due today, which has been more than three weeks. We hope you will clear the payments immediately and avoid any further actions.
We have attached a copy of your invoice and payment methods. Please respond to this email as soon as possible to confirm your payment dates and prevent us from taking action.
Thank you,
[ Company’s name]
Also read 👉: Gentle Reminder Meaning: How to Write a Reminder Emails
How to write a payment reminder message?
To write a payment reminder message, you need to include a few things that help you get the payment of your invoice faster and in a way that no customers get irritated.
Some of the ways to write an effective payment reminder messages are:
1. Compulsorily include the invoice number and due date in the message.
Try to include the invoice number and due date at the top within the subject line. This way, your clients cannot say they could not see it among the multiple messages they receive. Also, writing a follow-up message clearly and formally motivates the customer to clear their payment.
2. Attach the original or copy of the invoice in the payment reminder message.
The client may have accidentally deleted the message, including the invoices. You need to make it easier for the customer to remember the invoices by attaching them to every message or email you send.
3. Keep the message friendly and short
It is important to convey empathy in the very first payment reminder messages that you send. Keep in mind that maybe the client wants to clear the payment but gets busy or simply forgets the due invoices. Don’t use a statement like “ you should pay by XX date.” Instead, use a phrase like “ payment is due from XX date.”
4. Include the payment methods and payment terms
You don’t want your clients to look for invoices and return them just because they didn’t see the direct link or payment method. So, include the payment methods and the payment terms and conditions that help the client be more sure and put in less effort.
Why and When should you send a payment reminder message?
Around 89% of businesses said that late customer payments are stepping stones to their long-term goals. This is why sending payment reminder messages is crucial nowadays. Clients may forget their payment dates or invoices.
With a proper payment reminder short message or email, your businesses can let those customers take action regarding their due or outstanding payments and help in business scaling.
You can send the payment reminder message till you get your payment done. A good way to send these messages is at weekly intervals. This works well for businesses because, this way, they are not too forceful nor too sparse.
No matter the time and intervals, your main priority should be preparing formal invoice reminders and sending them before the due date and after it goes overdue. You can use the message and email templates we provided above, which help you follow up with your clients using these reminders:
- A friendly payment reminder message the week before the due date
- A gentle Payment reminder on the due date
- An overdue payment reminder after a week of the due date
- A follow-up late payment reminder after two weeks of the due date
- A final follow-up overdue payment reminder three weeks after the due date.
However, different companies need to set their own payment terms for adding penalties and setting interval times for the payments. Taking action after the final follow-up reminder is important because no businesses want to hold themselves in the loop of follow-ups and sending reminders.
Best Practices for sending payment reminder message
It is important to take a formal and gentle approach when sending payment reminders because wrong messages and messages in a bad tone can destroy client relationships.
Here are some useful steps in making follow-ups that work:
- Provide clients with their invoice details in the message: Clients should get their invoice details through messages or emails. If they are required to search their invoice numbers, they will most likely skip it for that day and hope to pay someday. Provide them with a direct link to it.
- Compulsorily attach the invoice number in messages: No matter what you say to your client through messages, they won’t understand if you are not precise with the invoice number. Providing invoice numbers will reduce the unnecessary QnAs.
- Be precise and clear: For the first messages, you need to be precise and clear and understand how to value the customer’s circumstances. Avoid unnecessary talks and ensure that your messages are clear.
- Don’t overwhelm the customers: Customers might feel irritated and frustrated if you regularly send them follow-ups. They might be planning to pay your invoice according to their payment schedules. You want your customers to have strong relations, not to bother them.
- Mention important dates: Make sure to mention the deadline in messages. This creates a feeling of urgency and allows clients to take action. Also, clarify after the particular date that penalties or extra fees begin.
Conclusion
Late payment is common in business nowadays. Studies show that the common reason for this latency in payment is clients’ incapability to repay and forgetfulness. Writing a good payment reminder message, which includes the invoice number, payment methods, direct talk, and a friendly tone, helps you get paid faster.
Businesses that often need to send payment reminder messages can use the above-mentioned payment reminder template in messages or emails. Attaching clients’ invoices to the message, being precise, and pointing out important dates can help you create and send effective payment reminders.
