In an ideal world, customers would pay their invoices on time, every time. But in reality, businesses often have to follow up on late payments, which can strain both cash flow and customer relationships. That’s where dunning emails come in.
A dunning email is a formal, professional reminder sent to customers to prompt payment on outstanding invoices. These letters range from polite pre-due date reminders to more urgent follow-ups for seriously overdue accounts. When used effectively, dunning emails can help you recover revenue faster while maintaining a respectful tone that keeps client relationships intact.
To make your collections easier and more consistent, we’ve created a free set of customizable dunning email templates, tailored for different customer scenarios and payment timelines.
Why You Need Dunning Email
If you’re manually following up on late payments using spreadsheets and calendar reminders, chances are you’re:
- Wasting valuable time
- Experiencing delayed cash inflows
- Struggling to scale collections efficiently
Dunning emails offer a professional and proactive way to communicate with customers, helping you get paid faster without damaging rapport.
What’s Inside the Free Dunning Email Template
This pack includes 7 email-ready templates for different stages of your collection journey:
| Template | When to Use |
|---|---|
| 1. Pre-Dunning Letter | Before the due date |
| 2. First Past-Due Reminder | 1–7 days after the due date |
| 3. Second Past-Due Reminder | 7–14 days overdue, with late fee notice |
| 4. Third Reminder | 14+ days overdue, with payment deadline |
| 5. For Valued Customers | Personalized outreach for long-term clients |
| 6. For Delinquent Accounts | Escalation email for habitual defaulters |
| 7. For Fast-Paying Customers | Gentle reminder tailored for reliable payers |
How to Use These Dunning Templates
Follow these quick steps to get started:
- Customize the content: Replace placeholders like
[First Name],[Invoice Number], and[Due Date]with actual data from your AR system or ERP. - Choose the right template: Match each template to your customer’s payment history and the invoice status. For example, send Template 1 before the due date, and escalate to Template 4 after two weeks of non-payment.
- Attach invoice details: Include a breakdown of the invoice number, due amount, and payment link to make it easy for customers to act.
- Schedule reminders: Use AR automation solutions like Peakflo to send follow-ups at defined intervals, especially for recurring late payers.
- Track responses: Note customer replies, payment commitments, or escalations for future reference. If no response, proceed to the next template in the sequence.
Want to Automate the Entire Dunning Process?
Instead of sending reminders manually, Peakflo’s Automated Dunning solution lets you:
- Automatically send the right dunning email based on invoice aging
- Track AR performance with real-time dashboards
- Set late fee rules and follow-up frequency
- Reduce DSO and improve cash flow with less manual effort
- Improve collection rates and customer experience
