Invoice Payment Reminders: When & How to Send them

Imagine managing the credit department of a company and discovering that the payments you were expecting haven’t arrived. Frustrating, right? Now you have to send payment reminders to customers. Although it can seem like an annoying task, sending invoice payment reminders is essential to maintaining liquidity and ensuring financial stability. A steady cashflow allows the company to thrive, invest in new opportunities and grow sustainably, but payment delays are common, especially in B2B markets.

So here’s a complete guide to effectively managing payment reminders. We’ll explain what they are, when and how to send them for best results, and even provide some sample invoice payment reminder letters.

What is a payment reminder?

A payment reminder is a formal reminder sent to a customer to remind them of an unpaid invoice. This communication serves to prompt payment in a friendly and professional manner and is one of the first actions taken to collect outstanding debts.

The main difference between a payment reminder and debt collection is the tone and approach. While a payment reminder is usually a polite reminder, debt collection may involve the intervention of lawyers or specialized agencies. Starting with a reminder letter is often enough to resolve most situations.

This has several purposes: to remind the customer of the amount due, to maintain good business relations and to ensure that payments are made in a timely manner. Writing a reminder letter in a clear and professional manner is essential. It should contain:

• Amount due
• Payment due date
• Method of payment
• Potential penalties of payment after due date

It’s often a good idea to send the letter via registered mail with return receipt to ensure it reaches the intended recipient.

When to send payment reminders

Ideally, the first payment reminder should be sent within a week of the invoice being due. The earlier a payment reminder is sent, the higher the likelihood of receiving a timely payment.

A friendly reminder a few days before the invoice is due not only ensures that the customer is aware of the upcoming due date, but can also reduce the number of reminders needed. This small, thoughtful gesture can make a big difference in maintaining good customer relations through the invoicing process.

A typical invoice payment reminder schedule may look like this:

• First communication: 3-7 days prior to due date
• Second communication: On due date
• Third+ communication: One week past due, can be repeated as many times as necessary depending on customer relationship
• Final communication: Payment warning and timeline depending on the value of customer relationship

As the payment delay increases, the tone of the reminders can gradually become firmer, but always maintain courtesy and professionalism. An aggressive approach could damage the business relationship and make it even more difficult to recover the debt.

Email invoice payment reminder examples for each payment stage

There are various types of payment reminder letters, each with a different tone and approach depending on the situation and the customer.

First payment reminder letter

This type of reminder is the first step and should be worded in a friendly manner. It reminds the customer of the payment due without creating tension. It includes a polite request and a repetition of the payment information. Below is a sample reminder letter.

Sample invoice payment reminder:

Subject: Payment Reminder - Invoice [Invoice Number]

Dear Customer,
We are writing to inform you that we have an overdue balance in credit of [amount] for [invoice number] sent on [date sent] and due on [due date].
We would appreciate if you could make a payment as soon as possible.
We remind you that payment can be made by [methods of payment]. If this invoice had already been paid, this message can be ignored.

Second payment reminder

If the first reminder goes unanswered, you should send a second reminder. This should be more forceful, but still professional in tone. The second reminder can begin a regular cadence of past due notices, usually sent no more than once per week. The second reminder should include a reference to the first communication and an invitation to contact the company to discuss any payment issues. Below is a sample second reminder letter.

Second payment reminder template:

Subject: Payment Reminder - Invoice [Invoice Number]

Dear Customer,
In regards to our previous letter sent on [first reminder date], which remained unanswered, we unfortunately find ourselves forced to once again request payment of invoice(s) no. [invoice number] of [issue date] for [amount] which has expired and has not yet been paid.
We remind you that payment can be made by [methods of payment].
Please reach out to us directly at [contact information] for questions on this invoice or payment.
If this invoice had already been paid, this message can be ignored.

Note that multiple rounds of payment reminders should be sent based on the customer relationship. If this is a more valued and established customer, it can be beneficial to offer leniency with payment terms to continue the relationship. For newer or less valued customers, this round of payment reminders can be shortened.

Payment warning example letter

When the previous reminders have not been effective, it’s time for a more serious message. A payment warning is formal and warns the customer that they have defaulted on the debt and the potential legal repercussions they may face as a result. The letter must be clear and specify a deadline within which the payment must be made to avoid further legal consequences.

Example payment notice:

Subject: Payment Notice - Invoice [Invoice Number]

Dear Customer,
Regarding our previous letters sent on [second reminder dates], we ask you to pay the invoice(s) no. [invoice number] of [issue date] for [amount] which has not yet been paid within [x] days of receipt of this letter.
We remind you that payment can be made by [methods of payment].
If this letter is not answered, we will be forced to take legal action to recover the amount owed.
We also inform you that this is valid as a notice of default for all legal purposes.
If this invoice had already been paid, this message can be ignored.

With a debt collection letter template like this one you can have a good starting point for creating your own collections strategy. Handling these types of reminders appropriately is essential to maintaining good customer relationships and ensuring that payments are made in a timely manner.

How Esker’s invoice automation can help

Effectively managing payment reminders helps ensure financial stability and reduce the number of unpaid invoices. There are different types of reminders, from the initial polite reminder to the formal warning, each with its own role in the debt collection process.

Automation — combined with human, personal attention — can make the process as efficient and stress-free as possible.

With Esker Invoice Delivery, organizations can:

• Reduce invoicing costs and error rates
• Eliminate delivery blind spots with full tracking and archiving
• Accelerate payments by delivering invoices the way customers want them
• Maintain compliance in over 60 countries with built-in e-invoicing standards

By integrating seamlessly with any ERP and centralizing invoice workflows, Esker removes the need for workarounds and manual follow-ups, freeing up AR teams to focus on value-added activities.

Ready to simplify and strengthen your invoice payment processes? Watch Esker's AR Invoice Automation demo now to learn more.