You need to get paid, on time. Late invoice payments are a common issue faced by businesses, but cash must be flowing in by the deadlines to keep your company afloat. Following up on outstanding invoices can feel awkward to navigate, particularly with clients with whom you’ve had a longstanding affiliation. When the time comes to chase the payment, and you’re agonizing over the tough conversations you’ll need to have with a client, remember that you are owed for your work! Those difficult conversations feel onerous, but luckily there are methods to help you to feel more in control in this area of business, which will also preserve the relationships between your business and its clients. We want to help take away some of your discomfort by offering some invoice reminder samples that will get you paid faster.
How can you get the money owed to you–quickly–without hurting your client relationships?
The first thing we need to consider is prevention. Your customers will be more likely to pay on time if you make the terms of a job as clear as possible at the onset of work. Have terms for repayment written clearly in the initial contract. Be sure to implement an exact date for payment as well. “Due 30 days after receipt” is much more clear than simply telling your customer that the payment is due after receipt. Don’t be vague: set your exact terms for repayment upfront.
Now let’s get into the basics of writing a late reminder notice. You want to hit the correct balance between being meek and being rude. It can feel personal when a customer fails to make their deadline for payment, but that is rarely the case. Begin with a simple format that conveys honestly the delay in payment, as well as reiterating the terms in which your client can pay. Keep this first reminder kind and positive. You want to preserve your customer connections, even if you are frustrated by the delinquent payment. Write your client’s name at the top left corner of your reminder, and then a gentle reminder of their outstanding balance. Add in their payment options, and finish the reminder with your company information and how to best reach you. Don’t forget a letter closing that matches the tone of your reminder. A simple “kind regards” sets the stage for a note that is respectful if it follows a courteous memo. The following is a simple reminder notice:
Dear Client,
We are contacting you today to remind you of your outstanding invoice (be sure to write the order number here as well). This is a friendly reminder that the balance is due in full by August 15th, as specified in the initial order. You can pay electronically here (put in an exact method or url), or by cash, cheque, etc. What is important here is to be as specific as possible about how to pay.
If payment has already been made, please disregard this message. Thank you for being a valued customer of (your company name).
Kind regards,
Your name plus company name and contact information
It is a good idea to make it clear that if the customer has run into any difficulties in paying, that they can contact you. An addendum you may want to consider for your first and subsequent reminders is “if for any reason you cannot currently settle this payment, please contact me immediately at” and then give them the best methods to reach you. You never know the reason behind a late payment, and it is up to you to be available to help in order to assist your clients to pay as soon as they can.
If you still have not been paid after your initial reminder, it is time to write and send a new one. You need to continue to be mindful about tone; keep the note professional and considerate, but your tone can become slightly more firm this time.
Dear Client,
Your invoice (add the order number) is now overdue by 15 days. This reminder is being sent to you as a courtesy before the surcharge is added to your original bill. Late payments of 20 days or more receive a late fee of x%, as laid out in the original agreement.
You can pay electronically here (put in an exact method or url), or by cash, cheque, etc. What is important here is to be as specific as possible about how to pay.
If you are having trouble settling your invoice in full, please contact me as soon as possible.
If payment has already been made, please disregard this message. Thank you for being a valued customer of (your company name).
Kind regards,
Your name plus company name and contact information
This example uses language that is slightly more firm than the first letter, yet is still polite and respectful. You have offered your assistance once more in helping your customer to pay, or to come to you with any unforeseen difficulties they may be experiencing. This will instill trust between you, and help to retain business with your loyal clients.
This method of formatting different invoice reminders as time progresses is the best way to chase late payments, and ensures that no matter how late the payment, you remain professional and kind in pursuing reimbursement. It can be time consuming to write out different templates for each new stage of non-payment, however. This is a great time to consider an online invoice reminder service which will format templates for you to choose from, and which automates your customer reminders.
Invoice Tracker is an add-on to Time Tracker by eBillity, Quickbooks or Xero accounting software and is a fully automated invoice reminder service. Its customized, pre-written emails are easy to format and utilize. Simply fill in the details like customer and invoice information, as well as your company name and logo, and attach the reminder set to a single invoice or a batch. These reminder sets are a group of emails, set to dispatch at specific times in relation to the due dates of your invoices.
Get a handle on your late payments. Start your Invoice Tracker free 30-day trial today.
