HomeLearning CenterPayment Reminder Templates That Actually Work

Payment Reminder Templates That Actually Work

If you own a small to medium-sized business, you’ve likely encountered this situation: you’ve established a clear agreement, closed the deal, and had a positive interaction with your client, only to have them miss the payment deadline.

Dealing with overdue payments is often one of the most challenging tasks that SMEs must address. One way to reduce late payments from clients is by consistently sending invoice reminders, including payment reminder templates, to ensure timely settlements.

In this article, we’ll delve into everything you need to know about improving cash flow and collections management, specifically focusing on payment reminders. We’ll discuss how to create effective payment reminder templates and the importance of late payment penalties.

Best Practices for Payment Reminders

Companies generally send out an initial invoice payment reminder one week before the due date. Subsequent reminders are sent after the client fails to meet the set deadline.

Ensure you follow these best practices for crafting effective payment reminder templates:

Keeping the Messaging Short and Sweet

Businesses frequently dispatch payment reminder templates a week before the payment due date. Following reminders are sent after the client fails to meet the deadline. These templates for overdue payments can vary significantly, but a golden rule is to maintain simplicity and clarity. Messages that are too complex or wordy may lead to confusion, or worse, be ignored.

Using the Right Tone in the Right Situation

The tone of your payment reminder should align with the gravity of the situation. For an initial reminder, a friendly and polite tone is typically sufficient. However, if the overdue payments persist, a more serious, but still professional tone for your collections management communication might be necessary.

Always Asking for Confirmation

A key best practice when sending out payment reminders is to always request a response or confirmation. This practice ensures that the client has received and understood the payment follow-up, and it also prompts them to take immediate action.

Putting an Extra Focus on the Call to Action (CTA)

The call to action in your debt collection communication or payment reminder should be clear and emphasized. This is what you want the recipient to do – settle the overdue invoice.

Be sure to specify the amount due, the payment method, and any late payment penalties. Leverage payment automation, if possible, to facilitate a quick and easy resolution for the customer.

How to Write Late Payment Reminders

Now that we’ve discussed the importance of payment reminders and best practices for crafting them, let’s dive into the specifics of creating persuasive and professional reminders that encourage prompt payment while maintaining a positive business relationship with your clients.

1. Payment Reminder Template: Invoice is Due in 14 to 7 Days 

For many clients, a gentle payment follow-up might be all it takes. After all, your invoice could easily get lost among the multitude of tasks your client is managing.

In such cases, it’s essential to maintain effective customer communication by sending a payment reminder email with a friendly tone. This approach gives the impression that you’re simply providing a courteous reminder of their overdue payments, ensuring they stay aware of their upcoming obligations.

Here’s a payment reminder template example 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]. We truly appreciate your business and hope our [Product/Service] has been beneficial for you.

Just as a friendly reminder, your payment for Invoice #256 is coming up on [Due Date]. We understand how easy it can be to lose track of payment due dates in the hustle and bustle of daily activities, so we thought a gentle nudge might be helpful.

When you’re ready, you can make your payment using one of these options: [Payment Methods].

Should you have any questions or need any assistance with your payment or our agreement, please feel free to get in touch. We’re here to help!

Kind regards,

[Your Name and Company]

2. Payment Reminder Template: Invoice is Due 

Sending a timely payment reminder when an invoice is due plays a crucial role in maintaining healthy cash flow, positive client relationships, and effective collections management.

Here’s an example of the payment reminder template: 

Subject: Friendly Notice: Invoice #[Invoice Number] Payment Due Today


Hello [Client’s Name],

We hope everything is going well with you. As a valued customer of [Company], we wanted to remind you that the payment for Invoice #[Invoice Number] is due today, [Due Date].

To make your payment, please use one of the following methods: [Payment Methods].

If you have any questions or concerns about the invoice, our services, or require any assistance, please don’t hesitate to reach out. Our team is more than happy to help.

We appreciate your prompt attention to this matter and thank you for your continued support.

Warm regards,

[Your Name and Company]

2. Payment Reminder Template: Invoice is 7 Days Due 

When an invoice becomes seven days overdue, a well-crafted payment reminder email template can be used to follow up with the client. This not only reminds them of the amount due and the due date but also provides a clear call to action to settle the invoice promptly to avoid late payment penalties.

Effective billing management and credit management are also crucial aspects of collections management. By establishing clear credit terms and payment policies, businesses can avoid overdue payments and reduce the need for debt collection. Consistent and open communication with clients can also help identify any issues or concerns that may delay payments and address them proactively.

Take a look at the payment reminder template below: 

Subject: Reminder: Payment for Invoice [Invoice Number] is 7 Days Overdue


Dear [Client Name],

I hope this email finds you well. As a valued client, I am reaching out to follow up on the payment for Invoice [Invoice Number] dated [Invoice Date]. I regret to inform you that the payment is now seven days overdue.

I understand that delays can occur in payment processing, but I would appreciate it if you could confirm the status of this payment promptly. As a reminder, the total amount due is [Invoice Amount]. If you have already made the payment, please disregard this email. However, if you have not yet paid, please take immediate action to settle the invoice to avoid any late payment penalties.

Please note that failure to settle the payment promptly may result in further actions, including debt collection measures. I value your business, and I am committed to maintaining a positive relationship with you. However, I cannot overlook the impact of overdue payments on my business’s financial stability.

Please let me know if there are any issues or concerns regarding this payment. I am open to discussing any payment plans or alternative arrangements to help you settle the invoice promptly.

Thank you for your cooperation in this matter.

Best regards,

[Your Name]

4. Payment Reminder Template: Invoice is 14 Days Overdue

As the invoice reaches two weeks past due, it’s essential to adopt a more serious tone in your payment reminder templates, emphasizing to the client the urgency of settling their overdue payments. For this invoice reminder, be sure to include a notice about any late payment penalties your client may potentially incur due to their continued delay.

Effective collections management involves using well-crafted payment reminder templates and timely invoice reminders to address overdue payments and minimize the impact of late payment penalties on your business.

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

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


Dear {{recipientName}},

We’re writing to remind you that payment for Invoice {{invoiceNumber}} has not yet been received.

According to our records, Invoice {{invoiceNumber}}, originally due on {{invoiceDueDate}}, is now {{invoiceDaysOverdue}} days overdue. We kindly request that you address this outstanding balance immediately.

Please be aware that a late fee may be added to your outstanding balance for Invoice {{invoiceNumber}} if payment is not received within 30 days past the initial due date. We urge you to settle this payment promptly to avoid any additional late fees.

Should you have any concerns or require assistance, please do not hesitate to contact us.


[Your Name and Company]

5. Payment Reminder Template: Invoice is More Than 30 Days Overdue

Clients with overdue payments of 30 days or more can pose a significant threat to your healthy cash flow. These are the accounts that require prompt payment follow-up, as further delays can gradually diminish your chances of actually receiving payment.

For this payment reminder template, it’s crucial to convey the sense of a final notice. Inform the client of the consequences and actions you’ll take if they fail to pay by the last cut-off date.

Maintaining an effective payment tracking and payment processing system can help you stay on top of these overdue payments and ensure you address them in a timely manner.

Try utilizing the following payment reminder template:

Subject: Urgent Notice: Invoice #256 is 30 Days Overdue


Dear [Client’s Name],

We hope this email finds you well. We regret to inform you that your payment for Invoice #256 is now 30 days overdue. We kindly request that you address this issue as soon as possible.

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

Please note that if we do not receive your payment for the said invoice within the next 15 working days, in accordance with our policy, we will have no choice but to forward this account to a collection agency.

We appreciate your prompt attention to this matter.

Best regards,

[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.

When Is The Perfect Time to Send Payment Reminders?

Effective cash flow management requires a proactive approach to collections management. One critical aspect of collections management is sending payment reminders to clients to ensure prompt payments. However, timing is crucial when it comes to sending payment reminders.

Many businesses follow the Net 30 and Net 45 payment terms, while others may use Net 60. Regardless of the payment terms, it is a good practice to send a payment reminder email at least seven days before the payment due date. This gentle nudge serves as a polite reminder to clients and helps maintain positive relationships.

Unfortunately, not all clients respond to initial payment reminders. In such cases, it is necessary to send reminders at least once a week until payment is received. If the payment is not received within 60-90 days, it may be necessary to turn the account over to debt collection or legal.

Using robust outstanding payment-due reminder software like Peakflo can significantly ease the collections management process.

This software lets businesses automate payment reminders across multiple channels, including email, SMS, and WhatsApp. By automating payment reminders, businesses can save time, streamline collections management, and ensure prompt payments.

If you’re interested in learning the arts and sciences behind reaching your customers on the right payment follow-up channel, download the free eBook below.

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Reasons Why Your Payment Reminder Templates Are Not Working

Payment reminders are a vital aspect of collections management, but they may not always be effective in prompting clients to settle their invoices. Here are three reasons why payment reminders may not work:

Failure to Receive Payment Reminder Failed

One reason why payment reminders may not work is that they may not be received by the client. This may be due to technical issues with the email server or the client’s spam filter blocking the email. It is important to confirm that the client has received the payment reminder email and ensure that the email is not marked as spam.

Changes in Client’s Contact Address

Another reason why payment reminders may not work is when the client changes their email address or starts using a new one. Keeping client contact information up-to-date and verifying email addresses before sending payment reminders is essential.

Wrong Person or Department

Sending payment reminders to the wrong person or department can also render them ineffective. It is essential to ensure that payment reminders are sent to the correct person or department responsible for settling the invoice. This can be achieved by maintaining clear communication with the client and verifying their contact information.

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.

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 payment collections 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! 

Take a product tour and book a free consultation to find out how much your business can save with Peakflo.


Lulu, as a content marketer in Peakflo, is passionate about educating users on accounts payable and receivable management to help businesses maximize their cash flows. When not glued to the screen, she has her attention either on her annoying brother or five adorable cats.
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