As a small business owner, one of your greatest challenges is ensuring that your clients or customers pay their invoices on time. The reality is that sometimes clients or customers may miss payment deadlines or forget to pay altogether, and this can seriously affect your cash flow. The solution to this predicament is sending a past-due invoice email.
In this article, we will explore what a past due invoice email is, why they are important, when to send them, and how to write one effectively.
Additionally, we will provide free templates to use when drafting past due invoice emails to make the process easier for you and ensure that you get paid for your services or products sold.
A past due or overdue invoice email is an email that a company sends to a client or customer to remind them that an invoice payment deadline has passed or the invoice is now overdue.
When customers or clients do not comply with a sales invoice's terms, it could endanger your business's financial health.
If clients don't act promptly on your initial invoice email, sending past due invoice emails is important because it helps ensure you receive overdue payments.
The following tips will help you to write an effective past due invoice email:
Before sending a past due invoice email, you must know when an invoice becomes overdue.
When writing an invoice, you should have a clearly stated due date for client’s reference.
However, if the due date to submit payment has passed, the invoice is now considered past due, and a reminder will need to be sent.
When reminding a client about a past due invoice, it's important to be mindful of your tone. Avoid using accusatory language, as this may cause the client to become defensive.
Try offering help in your final notice if the client struggles to pay the invoice. Some effective reminders that you can use in the past due invoice email are:
Offering payment options in past due invoice emails can be helpful for clients who may be unable to pay the full amount upfront or have difficulty paying by the original due date.
Look for alternative online payment methods and specify how to access them in the past due invoice email.
If the client does not respond to your past due invoice email or refuses to pay, send a follow-up past due invoice email that is firmer in its tone.
If the client still refuses to pay after that, you may have to engage a collection agency to recover the funds and take legal action to recover your money.
You should follow up with the client after a week of not receiving a response to your past due invoice email.
It shows you are serious about resolving the issue and receiving the payment.
It is important to have clear payment terms and conditions in the payment method in place to avoid late payments or overdue invoices.
Some effective ways to handle a late payment or an overdue invoice are:
Below are some free email templates that you can use when writing a to request payment past due invoice email:
Subject Line: Reminder: Payment Due for Invoice # [Invoice Number]
Dear [Client Name],
I hope this email finds you well. I am reaching out to remind you that the payment for invoice number [Invoice Number] is past due. According to our records, the payment was due on [Due Date].
We understand that sometimes payment schedules can slip our minds, so we kindly request that you settle the outstanding balance as soon as possible. If you have already made the payment, please disregard this email.
Please note that failure to pay may result in additional fees and could impact our future business transactions. We value our relationship with you and hope to continue working together in the future.
Thank you for your prompt attention to this matter.
Subject Line: Second Reminder: Payment Past Due for Invoice # [Invoice Number]
Dear [Client Name],
I hope this email finds you well. I am writing to follow up on our previous email regarding the payment for invoice number [Invoice Number].
We understand that payment delays can occur for various reasons, and we want to work with you to find a solution. However, it has now been [Number of Days Past Due] days since the payment was due, and we have yet to receive payment.
We kindly request that you settle the outstanding balance as soon as possible to avoid any further complications. If you have already made the payment, please disregard this email.
We appreciate your cooperation in this matter and look forward to resolving the issue as soon as possible.
Final Reminder: Payment Past Due for Invoice # [Invoice Number]
Dear [Client Name],
I hope this email finds you well. This is a final reminder that the payment for invoice number [Invoice Number] is now [Number of Days Past Due] days past due.
Despite our previous attempts to contact you, we have not received payment for this invoice. As we value our relationship with you, we kindly request that you settle the outstanding balance immediately.
Please be advised that if payment is not received within the next [Number of Days] days, we will have no choice but to escalate this matter to our legal team. This could result in additional fees and legal action.
We sincerely hope that it does not come to this and that we can resolve this matter amicably. We look forward to hearing from you soon.
The following best practices will help you to make the most out of past due invoice email templates:
With Portant, you can automate your invoicing and email-sending process. This means you no longer have to spend hours creating invoices and manually sending follow-up emails. Portant automatically generates and sends invoices on your behalf, saving you time and effort.
Try using Portant's free Google Sheets invoice template, and send your first invoice in minutes.
Portant's invoicing and email automation features are incredibly flexible and customizable. You can easily create professional-looking invoices with your own branding and logo, add your own payment terms, and choose your preferred payment method.
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