Effectively managing accounts receivable is crucial for maintaining healthy cash flow. A key element of this process is sending well-crafted past due invoice letters. These letters serve as gentle reminders, escalating in tone as the payment becomes further overdue. Using a clear and professional approach is more likely to result in a prompt payment than resorting to aggressive tactics.
This article provides a collection of ten past due invoice letter templates, designed to be adapted to your specific circumstances and the length of time the invoice has been outstanding. Each template offers a different level of urgency, ranging from friendly reminders to more assertive demands for payment. Remember to always reference the invoice number and due date to avoid any confusion.
Before sending any letter, double-check your records to ensure the invoice is indeed past due and that there are no disputes or misunderstandings regarding the services or products provided. A quick phone call or email to confirm receipt of the invoice can also prevent unnecessary escalation. Tailoring each letter to the client and their payment history can significantly improve your chances of a successful resolution.
Sending regular, professional, and escalating reminders significantly improves your chances of getting paid on time. Using these past due invoice letter templates is a strategic way to address late payments while maintaining a positive business relationship. Remember to customize these templates to your specific needs and always keep a record of your communication with the client.
Past Due Invoice Letter Templates
Template 1: Gentle Reminder (5-10 Days Past Due)
Subject: Friendly Reminder: Invoice [Invoice Number]
Dear [Client Name],
This is a friendly reminder that invoice [Invoice Number] for [Amount] is now past due. The due date was [Due Date].
You can view the invoice online here: [Link to Invoice]
If you’ve already made a payment, please disregard this email. If not, we would appreciate it if you could arrange payment as soon as possible.
Thank you for your business.
Sincerely,
[Your Name/Company Name]
Template 2: Reminder (15-20 Days Past Due)
Subject: Invoice [Invoice Number] Overdue
Dear [Client Name],
We are writing to remind you that invoice [Invoice Number] for [Amount], due on [Due Date], is now overdue. We understand that things can sometimes be overlooked, so we wanted to bring this to your attention.
Please remit payment at your earliest convenience. You can make a payment online here: [Link to Payment Portal] or by mail to [Your Mailing Address].
Please let us know if you have any questions.
Sincerely,
[Your Name/Company Name]
Template 3: Second Notice (30 Days Past Due)
Subject: Second Notice: Invoice [Invoice Number] – Past Due
Dear [Client Name],
This is a second notice regarding invoice [Invoice Number] for [Amount], which was due on [Due Date]. We have not yet received your payment.
We value your business and want to ensure your account remains in good standing. Please arrange for payment within the next [Number] days to avoid further action.
You can pay by [Payment Methods].
Sincerely,
[Your Name/Company Name]
Template 4: Firm Reminder (45 Days Past Due)
Subject: Urgent: Invoice [Invoice Number] – Over 45 Days Past Due
Dear [Client Name],
We are writing to express our concern regarding invoice [Invoice Number] for [Amount], which is now over 45 days past due. Despite our previous reminders, we have yet to receive your payment.
We urge you to make immediate payment. If we do not receive payment within [Number] days, we will be forced to consider other options for recovering the outstanding balance.
Please contact us immediately at [Phone Number] or [Email Address] if you have any questions or require further clarification.
Sincerely,
[Your Name/Company Name]
Template 5: Final Demand (60 Days Past Due)
Subject: Final Demand: Invoice [Invoice Number] – Immediate Action Required
Dear [Client Name],
This is our final demand for payment of invoice [Invoice Number] for [Amount], which is now 60 days overdue. Despite multiple attempts to contact you, we have not received payment or a response.
Unless we receive payment in full within [Number] days, we will have no choice but to refer this matter to our collections agency. This will negatively impact your credit rating and may result in legal action.
Please remit payment immediately to avoid further consequences.
Sincerely,
[Your Name/Company Name]
Template 6: Payment Plan Offer (30 Days Past Due)
Subject: Invoice [Invoice Number] – Payment Plan Option
Dear [Client Name],
We understand that financial situations can sometimes be challenging. Regarding invoice [Invoice Number] for [Amount], which is now 30 days past due, we’d like to offer a payment plan option to help you settle your account.
We propose a payment schedule of [Payment Amount] per [Time Period] for [Number] months. Please contact us at [Phone Number] or [Email Address] within [Number] days to discuss this option further.
Sincerely,
[Your Name/Company Name]
Template 7: Stop Work Notice (45 Days Past Due)
Subject: Notice of Service Interruption – Invoice [Invoice Number]
Dear [Client Name],
Due to non-payment of invoice [Invoice Number] for [Amount], which is now 45 days past due, we regret to inform you that we will be temporarily suspending our services/deliveries to you, effective [Date].
Services will be reinstated immediately upon receipt of payment in full. We value your business and hope to resolve this matter quickly.
Please contact us at [Phone Number] to discuss this further.
Sincerely,
[Your Name/Company Name]
Template 8: Request for Explanation (20 Days Past Due)
Subject: Inquiry Regarding Invoice [Invoice Number]
Dear [Client Name],
We are following up on invoice [Invoice Number] for [Amount], which was due on [Due Date]. We haven’t received payment and wanted to ensure everything is in order.
Is there any reason why payment has been delayed? Please let us know if you have any questions or concerns regarding the invoice. We are happy to assist you.
Sincerely,
[Your Name/Company Name]
Template 9: Statement Attachment (Every Notice)
Subject: Invoice [Invoice Number] – Attached Statement
Dear [Client Name],
Please find attached a copy of invoice [Invoice Number] for [Amount], which is currently [Number] days past due. A detailed statement of your account is also included.
We kindly request that you review the statement and arrange for payment as soon as possible.
Sincerely,
[Your Name/Company Name]
Template 10: Focus on Relationship (15 Days Past Due – Long Term Client)
Subject: Checking In – Invoice [Invoice Number]
Dear [Client Name],
Hope you are having a great week. Just a quick note regarding invoice [Invoice Number] for [Amount], due on [Due Date].
We value our long-standing relationship with you. Let us know if there’s anything we can do to help facilitate payment. Perhaps we can offer a small discount for early settlement?
Sincerely,
[Your Name/Company Name]
Conclusion
Utilizing these templates will help you professionally manage past-due invoices. Remember to adapt them to your specific situation, maintain detailed records of all communication, and escalate your approach as needed. Prompt and professional communication is key to resolving payment issues while preserving valuable business relationships.
