Late payments can be a frustrating experience, especially for small business owners and entrepreneurs who rely on timely payments to maintain cash flow and keep their business running smoothly. For many coaches and solopreneurs, the thought of following up with a customer on an overdue invoice evokes similar feelings to sitting in traffic during rush hour. But unlike traffic, past due payments can have a serious impact on your bottom line.
That's where a past due invoice email comes in: It's a way to follow up with clients who have missed their payment deadline and remind them of their outstanding invoice. In this article, we'll provide a comprehensive guide on how to write an effective past due invoice email. Our goal is to help you improve your chances of getting paid on time, whether you're dealing with a few overdue invoices or struggling with late payments on a regular basis.
Key elements of a past due invoice email
Crafting a past due invoice email that gets results requires careful attention to detail. Think of it like a pilot running down a pre-flight checklist before takeoff. Just as a pilot checks every instrument and system to ensure a safe and successful flight, you should also be sure to include key elements in your past due invoice email to ensure a successful outcome. By doing so, you can not only improve your chances of getting paid on time, but also maintain a positive relationship with your clients.
So, what are the key elements you should include in your past due invoice email? Let's take a closer look at each component and why they're so important.
- Clear and concise subject line: The subject line is the first thing your client will see, so it's important to make it clear and to the point. Use keywords like "past due" or "payment reminder" to grab their attention and let them know what the email is about.
- Personalized greeting: Addressing the client by name can help establish a personal connection and make the email feel less automated. It's also a polite way to start the email and show that you value their business.
- Invoice details: Include the invoice number, amount due, and due date in the body of the email. This makes it easy for the client to reference their records and understand what they owe.
- Friendly but firm tone: It's important to maintain a professional tone in the email, but you don't want to come across as overly aggressive or confrontational. A friendly but firm tone can help convey the urgency of the situation without alienating the client.
- Payment options: Provide clear instructions on how the client can pay their outstanding balance. This can include options like online payment portals, checks, or wire transfers. Making it easy for the client to pay can increase the likelihood of getting paid on time.
By including these key elements in your past due invoice email, you can increase the chances of getting paid on time and maintain a positive relationship with your clients.
Tips for writing a successful past due invoice email
Now that we've covered the key elements that make up a past due invoice email, let's dive into some tips for crafting an email that will motivate the recipient to pay promptly. First, let’s tackle the question lots of small business owners have: What if I’m not a confident writer? Not to fear. Just like learning anything new—from how to write an estimate to practicing mindfulness—writing a successful past due invoice email is a skill you can develop. The tips below will help expedite the learning curve—even if writing’s not an area you naturally excel in.
Tip #1: Be polite and professional
It's important to approach the situation with professionalism and courtesy. Avoid using accusatory language or making assumptions about why the payment is late. Instead, express understanding and a willingness to work together to resolve the issue. Here's an example:
Dear [Client Name],
I hope this email finds you well. I wanted to reach out to you regarding invoice [Invoice Number] which appears to be past due. I understand that things can get busy and payments can slip through the cracks, so I wanted to follow up and ensure that everything is okay on your end.
Tip #2: Clearly state the issue and desired outcome
Be clear about what the issue is and what you're hoping to achieve with the email. Provide all necessary details, including the amount owed, the invoice number, and the due date. Here's an example:
Our records indicate that your payment of [Amount Due] for invoice [Invoice Number] is now [Number of Days] past due. We kindly request immediate attention to this matter to ensure the timely resolution of this issue and avoid any further late fees.
Tip #3: Offer payment options and deadlines
Providing payment options and deadlines can help motivate the recipient to take action. Offer flexible payment options if possible and clearly state the consequences of not paying the invoice by a certain date. Here's an example:
Please let me know if you require any assistance with this payment, or if you have any questions regarding the invoice. We kindly request that payment is made in full by [Date], to avoid any further late fees.
Tip #4: Keep the tone friendly and positive
Even though the email is addressing a late payment, it's important to maintain a friendly and positive tone. Emphasize that you value the recipient's business and are committed to finding a solution together. Here's an example:
We greatly value your business and appreciate your prompt attention to this matter. Please do not hesitate to contact us if you have any questions or concerns. We are committed to working with you to ensure a successful outcome.
Common mistakes to avoid
Unless you’re a freelance writer (or plan to become one), the idea of crafting an email like this may feel intimidating. Especially considering your hard-earned money is on the line. We can’t blame you for feeling this way. After all, just like how ignoring the signs of a clogged drain can lead to costly plumbing repairs down the road, neglecting to avoid common mistakes in your past due invoice emails can result in damaged client relationships and lost revenue.
The good news? In this section, we'll discuss some of the most common errors people make when crafting these emails, and offer alternative strategies to help you avoid these pitfalls and achieve your goal of prompt payment.
- Being too aggressive: While it's important to convey the urgency of the situation, being too pushy or confrontational can come across as unprofessional and damage the business relationship. Instead, use a firm yet polite tone to remind the client of their outstanding balance.
- Providing too much information: Including unnecessary information in the email can dilute the message and make it harder for the recipient to understand the key points. Keep the email focused on the overdue payment and the actions required to resolve the issue.
- Using a generic template: A generic email template can make the email appear impersonal and robotic. Instead, customize the email to include specific details about the client's outstanding balance and due date.
- Failing to offer a solution: A past due invoice email should not only remind the client of their outstanding balance but also offer a clear solution to resolve the issue. Whether it's a payment plan or an alternative payment method, providing options can make it easier for the client to settle their debt.
Example email templates
While many entrepreneurs and coaches envision a utopia where clients or customers pay on time, every time—reality is often very different. One recent study even found that up to half of US business’ invoices become overdue.
And while no one is excited about hearing a statistic like that, how you respond is what matters most. Because at the end of the day, you can either chalk this up as another reason why running a small business is hard... or, you can look at it as an opportunity to gain a skill that could pay off (literally) for years and years to come.
We hope you’ll choose the latter—and we’re here to help.
Below, you’ll find three sample email templates you can use for inspiration, depending on how late the invoice in question is.
It’s important to note that there doesn’t seem to be a “gold standard” for the number of emails or frequency, what most people do agree on is this: The more time that passes, the harder it is to get a customer to pay up.
With that in mind, here are three payment reminder email templates you can use to increase your chances of getting paid—while maintaining a positive relationship with your customer or client.
Recently past due: 7-14 days (aka "The Gentle Nudge")
Email subject line: Reminder: [Invoice Number] - Due date passed
Hello [Client Name],
I hope this email finds you well. I wanted to follow up with a friendly payment reminder about [Invoice Number] totaling [Insert amount due], which is now past due. I understand that sometimes payments may be delayed due to unforeseen circumstances, but I’d appreciate it if you could take care of this as soon as possible.
You can make a payment now by [Insert directions for paying the invoice].
If there are any issues or questions regarding the invoice, please respond to this email now to let me know so that we can address them as soon as possible. I’m always open to working with my clients to find a solution that works for everyone.
Thank you for your prompt attention to this matter. I value your business and look forward to continuing our partnership.
Best regards,
[Your Name]
The strategy behind this email: This email is designed to remind the client or customer that their payment is overdue, but in a friendly and non-threatening way. By acknowledging that they may have simply overlooked the payment, the tone is less confrontational and more helpful. This email is effective in situations where the payment is only a few days past due and the client may have simply forgotten.
Past due: 14-30 days (aka "The Firm Reminder")
Email subject line: [Invoice Number] Past due invoice reminder
Hello [Client Name],
I hope this email finds you well. I noticed that [Invoice Number] totaling [Insert amount due] remains unpaid, and I wanted to reach out and follow up on this matter.
I value my relationship with you and would like to remind you that the invoice is now past due. I kindly request that you make the payment as soon as possible to avoid any further delays.
You can make a payment now by [Insert directions for paying the invoice].
If there are any issues or questions regarding the invoice, please respond to this email now so we can discuss a solution. I am always happy to work with my clients to find a solution that works for everyone.
Thank you for your prompt attention to this matter. I appreciate your business and look forward to continuing our partnership.
Best regards,
[Your Name]
The strategy behind this email: This email is designed to be more assertive in tone while still maintaining a professional demeanor. It clearly communicates the urgency of the situation and the need for prompt payment. This email is effective in situations where the payment is significantly past due and a more direct approach is necessary.
Final notice: 30-60 days (aka "The Last Call")
Email subject line: Final Notice: [Invoice Number] - Late payment reminder
Hello [Client Name],
I hope this email finds you well. I have made several attempts to contact you regarding [Invoice Number] totaling [Insert amount due], which is now significantly past due. I understand that unforeseen circumstances may arise that could affect payment, but we need to resolve this matter as soon as possible.
This email serves as a final notice. As outlined in our original payment terms, if I do not receive payment within the next [number of days] days, I will have to take further action. This may include late payment fees, passing the matter onto a collection agency, or pursuing legal action.
I value my relationship with you and hope that we can resolve this matter amicably.
You can make a payment now by [Insert directions for paying the invoice].
If there are any issues or questions regarding the invoice, please respond to this email now so we can discuss a solution.
Thank you for your prompt attention to this matter.
Best regards,
[Your Name]
The strategy behind this email: This email is designed to be the final attempt to collect payment before taking legal action. It communicates the seriousness of the situation and the consequences of continued non-payment. While still professional in tone, it is less formal and more urgent. This email is effective in situations where the payment is significantly past due and more aggressive action is necessary to collect payment.
Follow-up strategies
If you've sent a past due invoice email and haven't received a response, don't worry. Sometimes, people get busy, and a friendly reminder can be just what they need to prompt them to take action. However, if you still haven't received payment after a few days, it may be time to follow up. Here are three ways you can do that—in a friendly, non-pushy, but effective way.
1. Send a polite reminder email.
Yes, we’re aware we just provided three email templates that serve this purpose, but what we’re talking about here is a short, polite payment reminder email to follow-up to each of those. For example, if you don’t receive a response to the “gentle nudge” email above, you might follow up a few days later with email like the following:
Subject line: Did you miss this?
Hey [Firstname],
Just checking in to see if you received my recent email about your past-due invoice?
You can easily make a payment now by [Insert payment instructions].
Have questions about the invoice, or are you experiencing issues that are making it difficult to pay the outstanding invoice at this time? Hit “reply” to this email now to let me know. I’m always happy to work together to find a solution that works for the both of us!
Thanks,
[Your Name]
2. Make a phone call.
If you still haven't received a response after sending a follow-up email, a phone call can be a great way to follow up. Keep in mind that it's important to remain polite and professional. Start by identifying yourself and the reason for the call. Then, ask if they have any questions or concerns about the invoice and if there is anything you can do to help. If they promise to pay by a certain date, be sure to follow up with them if the payment doesn't arrive on time.
3. Consider offering a payment plan.
Let’s say you do hear back from the client... but they say they can’t pay for whatever reason. If this happens, you can consider offering a payment plan. This can help them to pay off the balance in more manageable installments, while still ensuring that you receive payment for your services or products. Make sure to set clear terms and conditions, such as the duration of the payment plan and any fees or interest that may apply.
Bottom line: it's important to persist in your follow-up communication to help resolve the issue more quickly. While it may be frustrating to deal with unpaid invoices, maintaining a professional and friendly demeanor can help preserve your business relationships and ensure that you get paid for your hard work.
Conclusion
Sending past due invoice emails can be a challenging task, but with the right approach, it can help you maintain positive relationships with your clients and customers while ensuring that you receive payment on time. Remember to include key elements such as a clear subject line, a polite tone, and a concise message that outlines the issue and the steps required to resolve it. Follow our tips for crafting a successful past due invoice email, and avoid common mistakes that could undermine your efforts.
We hope that this article has provided you with practical advice and actionable strategies that you can implement in your business. By using our example templates and following our suggestions, you can write effective past due invoice emails that will help you get paid on time and maintain strong relationships with your clients and customers.
However, we understand that sending past due invoice emails can still be a daunting task for some small business owners and coaches. That's where Practice comes in.
Practice is a holistic customer-relationship-management (CRM) platform that can streamline the payment process, by allowing you to easily manage all of your customer interactions in one place. From storing client records to booking appointments, processing payments, sending emails, and more, Practice has you covered. Not only can this save you time, it may also reduce the likelihood of needing to send past due invoice emails in the first place (win-win!). To see how Practice can help you launch or grow your small business, start your free 7-day trial today
