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Payment Reminder Templates That Actually Work

Payment Reminder Templates that Actually Work

generating a payment reminder using accounts receivable software

If you’re running a small-medium-sized enterprise, you’ve probably been there. You’ve set the agreement clear, signed the deal, had a great conversation with the client, only for them to fall short on the due date.  

Catching up on late invoices is one of the most daunting ordeals SMEs have to go through. One way to lessen overdue settlements from clients is by being consistent in sending out payment reminder emails.

In this article, we’ll reveal everything you need to know about payment reminders, including how you can craft your well-thought-out letter and what accounts receivable software can do to ease the process.

Why Are Late Payment Reminders Important?

Nobody likes to pester anyone, let alone a client. But, as an SME that relies on modest capital, you may not have the luxury of waiting out on the payments you deserve right now. 

Every business thrives on a healthy cash flow. Take that away, and your company may find it hard even to remain afloat. Effective cash flow management is vital, which is why many SMEs opt for an automated cash flow system. 

Sending out well-crafted notices or reminders is integral to managing cash flow successfully. Reminders allow you to communicate clearly with your clients and help you encourage them to pay you on time.

When is The Perfect Time to Send Payment Reminders?

The ideal time to send out payment reminders depends entirely on the nature of your business. But, regardless of the type of business you’re in, timing is essential to keep the invoice fresh in your client’s mind. 

Many companies follow the Net 30 and Net 45 terms (sometimes even going as long as a Net 60). Whichever term you’ve agreed upon with your client based on your standards, it’s a good practice to send a email, preferably using a payment reminder application,  seven days before the due date. This practice gives your client a polite cue about their upcoming invoice settlement. 

Now, this initial nudge doesn’t work for everyone. There will be those who’ll go past due without giving so much as a single glance. In this case, you’ll have to keep sending out reminders, at least once a week, before you call it quits and hand the account over to collection or legal. For many contracts, 60-90 days should be ripe for collection to take over. 

Using robust outstanding payment due reminder software, like the one we have here on Peakflo, lets you effortlessly automate payment reminders, not just through email but across several channels, significantly easing the way you reach out to customers. 

How Should I Write Late Payment Reminders?

Companies generally send out a payment reminder a week before due. The succeeding ones will be after the client falls short of the set date. Now, payment reminders aren’t all the same. The type of tone you’d want to use will depend on the severity of the situation. One essential thing to remember is to keep it simple and easy to comprehend, going straight to the point. 

Invoice is Due in 14 – 7 Days – Friendly Tone

For a good number of clients, a friendly reminder could be all it takes. After all, your invoice can easily get lost in the dozens of other things your client company looks after. So for this payment reminder email, use a friendly tone that feels you’re just there to provide a light heads up of their upcoming due. 

Here’s an example template to give you an idea: 

Subject: How’s it going? Just a friendly reminder for invoice #256


Hi [Client’s Name], 

Thank you for choosing [Company]. I hope you found your purchase of our [Product/Service] extremely helpful.  

This email is just a friendly reminder that your payment for invoice #256 will be due next week on December 21st. 

You may send your payment to us via [Payment Methods].

If you have any questions about your payment or our contract, please don’t hesitate to let me know.


[Your Name and Company]

Invoice is 14 Days Overdue – Firm Tone

Now that the invoice is two weeks past due, you’ll need to adopt a more serious tone, letting the client know that you need them to settle the invoice. For this payment reminder, be sure to include a notice about any additional late fees your client can potentially incur.

Here’s how you can use Peakflo’s variables to auto-fill personalized details in your payment reminder email.

Subject: Reminder: Invoice{{invoiceNumber}}  is {{invoiceDaysOverdue}}Days Overdue


Dear {{recipientName}},

This email serves as a reminder that we have yet to receive payment for invoice {{invoiceNumber}}. 

According to our records, invoice {{invoiceNumber}}, due last {{invoiceDueDate}}, is now {{invoideDaysOverdue}} days past the original due date. 

Be informed that a late fee may be incurred in your outstanding balance for invoice {{invoiceNumber}} if we have not received payment after 30 days past the initial due. Please clear the payment as soon as possible to avoid incurring any late fees.


[Your Name and Company]

Invoice is More Than 30 Days Overdue – Urgent Tone

Clients that go 30 days past due can pose a significant threat to your healthy cash flow. These are the accounts that you’d want to collect soon since further prolonging them can gradually lessen your chances of actually getting paid. 

For this email reminder, you’d want to give it a feel of a final notice. Let the client know about the consequences and the actions you’ll take if they don’t pay past the last cut-off date. 

Subject: URGENT: Invoice #256 is 30 Days Overdue


Dear [Client’s Name],

Your payment for invoice #256 is one month (30 days) overdue. Therefore, we require that you address this issue as soon as possible.

This invoice, issued on [Issue Date], was due last [Due Date]. Since 30 days have passed since the initial invoice was due, a late payment fee of [Interest Rate] has been applied to the outstanding balance.

Please be advised that if we do not receive your payment for the said invoice within 15 working days, as per policy, we will have to turn over this account to a collection agency.


[Your Name and Company]

After sending several email reminders to the client and still to no avail, you may need to seek out the help of a third-party collection agency. Depending on your policy, you could do this step after the account went 30-90 days past due. As a last resort, you can always threaten legal action, which is enough motivation to settle for some clients.

The Benefits of Automating Reminders

You’d want to have a good process in place that immediately sets in motion as soon as an account goes past due. You can do this the old-fashioned way, which includes manual monitoring and countless hours of administrative functioning, or you can use a reliable payment reminder app for business to ease not just sending out payment reminders but all aspects of invoicing.

How Peakflo Helps

There are many reasons to automate accounts receivable – one of which is smoother invoicing. Remember the conventional way of setting up an invoice reminder system? Yes, that can be slow and tedious. By incorporating accounts receivable software into your AR management, you’ll leverage these powerful features for your invoicing process:

  • Create Professional Invoices

Enjoy seamless invoice customizations where you can easily tailor every line item, from discounts, tax rates, and more. Validate draft invoices before sending them over to your customers.

Receive payments straight to your bank account with invoice creation
  • Generate and Automate Invoice Reminders

Create invoice reminders based on your specific scenario from a selection of pre-written templates. You can then opt to send scheduled or ad-hoc reminders across many channels, like email, SMS, and instant messenger apps. Your entire team can comfortably utilize these features under one centralized dashboard.

Email reminder Peakflo
  • Predict and Monitor Cash Inflows

Predict cash inflow based on past invoice performance. Gain deep insights into your AR process and the current condition of your cash flow.


Cash flow analytics

Peakflo can seamlessly complement your favorite accounting software and is 100% free forever. Start benefitting from an automated cash flow system today! 

Put Your Accounts Receivable on Autopilot and Get Paid 2x Faster

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