Payment Reminder Email: How to Write an Effective Collection Notice
This guide covers everything you need to know about overdue payment reminder emails. We cover when to send them, what to include, best practices, and how to escalate when necessary.
Late payments can disrupt your cash flow and create unnecessary stress. Whether you’re a freelancer, small business owner, or independent contractor, getting paid on time is crucial. But what happens when a client misses a payment?
Crafting an effective payment reminder email can help you collect overdue invoices professionally and efficiently — without damaging your client relationships.
Let’s understand how:
What Is an Overdue Payment Reminder Email?
An overdue payment reminder email is a professional notice sent to a client when an invoice has not been paid by its due date. The goal is to remind them of the outstanding payment while maintaining a positive business relationship.
A well-crafted payment reminder email should:
- Be polite and professional
- Clearly reference the overdue invoice (invoice number, due date, and amount due)
- Provide payment options and a direct way to pay
- Mention any late fees, if applicable
- Offer a way for the client to contact you with questions
Pro Tip: Using Invoice Fly’s Notifications can automate this process, ensuring clients receive timely reminders before payments become overdue.
How to Avoid Late Payments in the First Place
Preventing overdue payments starts with setting clear expectations and using the right tools. Here’s how:
- Clearly Define Payment Terms – State due dates, accepted payment methods, and late fees in contracts and invoices.
- Send Invoices Promptly – Don’t delay sending invoices. Use Invoice Fly’s Invoice Templates to create and send professional invoices quickly.
- Offer Multiple Payment Methods – The more convenient it is for clients to pay, the faster they will.
- Use Automated Payment Reminders – Schedule reminders before and after the due date with Invoice Fly’s Notifications.
- Request Partial Payments Upfront – Deposits help secure commitment and minimize risk.
How to Remind a Client to Pay You: Tips and Tricks
It can be frustrating to be paid late. However, to keep your relationships in tact keep these best practices for sending overdue payment reminders in mind:
- Be Proactive – Send a friendly reminder before the due date to encourage timely payment.
If a client’s invoice is due in three days, send a reminder now to keep them on track and avoid last-minute excuses.
- Stay Professional and Polite – Keep the tone courteous to maintain a good relationship.
Instead of saying “You haven’t paid yet!” try “Just a quick reminder that your invoice is due—let us know if you need any details.”
- Include All Necessary Details – Avoid back-and-forth emails by ensuring the reminder contains the invoice number, due date, outstanding amount, and payment options.
“Invoice #45678 for $1,200 was due on March 10. You can pay via bank transfer or credit card using this link: [Payment Link].”
- Follow Up – If the first reminder is ignored, follow up with progressively firmer emails.
After an initial gentle reminder, a second email could mention potential late fees or service disruption.
- Offer Assistance – If the client is experiencing financial difficulties, consider negotiating a payment plan.
We understand that circumstances may change. If you need to discuss alternative payment arrangements, let us know.”
When to Send Overdue Payment Reminder Emails
Timing is key when reminding clients about overdue invoices. Here’s an ideal timeline for sending payment reminders:
- Before the Due Date – A gentle reminder a few days before the due date.
- On the Due Date – A confirmation that payment is now due.
- One Week Late – A firm but polite notice that the invoice is overdue.
- Two Weeks Late – A stronger reminder warning about potential late fees.
- One Month Late – A final notice before escalating to collections or legal action.
Invoice Fly’s Notifications can automate these reminders, saving you time and ensuring consistency.
Overdue Payment Reminder Email Templates
Here are templates you can use at each stage:
1. Before Due Date (Friendly Reminder)
Subject: Upcoming Payment Reminder for Invoice #[Invoice Number]
Hi [Client’s Name],
I hope you’re doing well! Just a quick reminder that invoice #[Invoice Number] for [Amount] is due on [Due Date]. Please let us know if you need any payment details.
[Include payment link]
Thank you!
Best, [Your Name]
2. On Due Date (Due Today)
Subject: Payment Due Today – Invoice #[Invoice Number]
Hi [Client’s Name],
This is a reminder that invoice #[Invoice Number] totaling [Amount] is due today. Please arrange payment at your earliest convenience.
[Include payment link]
Let me know if you have any questions.
Best, [Your Name]
3. One Week Late (Firm Reminder)
Subject: Overdue Payment Notice – Invoice #[Invoice Number]
Hi [Client’s Name],
I wanted to follow up on invoice #[Invoice Number] totaling [Amount], which was due on [Due Date]. As of today, we haven’t received payment. Please make payment as soon as possible to avoid any late fees.
[Include payment link]
Let us know if there are any issues.
Best, [Your Name]
4. Two Weeks Late (Stronger Warning)
Subject: Urgent: Payment Overdue for Invoice #[Invoice Number]
Hi [Client’s Name],
Despite previous reminders, invoice #[Invoice Number] for [Amount] remains unpaid. Please submit payment immediately to avoid late fees or service disruption.
[Include payment link]
Best, [Your Name]
5. One Month Late (Final Notice Before Action)
Subject: Final Notice: Outstanding Payment for Invoice #[Invoice Number]
Dear [Client’s Name],
This is the final notice regarding the overdue payment of [Amount] for invoice #[Invoice Number], due on [Due Date]. If payment is not received within [X] days, we may escalate this matter to collections or legal action.
[Include payment link]
Please contact us immediately to resolve this issue.
Best, [Your Name]
What to Do If an Invoice Is Less Than 90 Days Late or More Than 90 Days Late
- Less than 90 days late: Keep communication open and act quickly. Send a friendly reminder email shortly after the due date. If there’s no response, follow up with a firmer notice. If a client is struggling financially, consider offering a short-term payment plan to secure at least partial payment.
Staying professional and proactive at this stage can help prevent further delays. Invoice Fly’s Notifications can automate these reminders, ensuring consistency and saving you time.
- More than 90 days late: The longer an invoice remains unpaid, the harder it is to recover the funds. If previous reminders have been ignored, escalate the situation with a formal demand letter detailing the overdue amount and potential consequences, such as late fees, service suspension, or legal action.
If the client remains unresponsive, it may be time to involve a collections agency or seek legal advice.
Be sure to document all correspondence and payment attempts, as these records may be necessary if legal action becomes unavoidable.
Invoice Fly’s Reporting Software helps track overdue payments and maintain an organized record of outstanding invoices, ensuring you have the necessary documentation to back up your claim.
Should You Ever Send a Late Invoice to Collections?
If an invoice remains unpaid despite multiple reminders, you may need to escalate. Sending an invoice to collections should be a last resort, as it may harm your client relationship. Before doing so:
- Send a final written warning stating that collections action is imminent.
- Offer a payment plan as a last attempt to resolve the issue.
- Consult with a collections agency or legal professional for guidance.
Get Paid On Time
Late payments are frustrating, but a structured approach to reminders can significantly increase your chances of getting paid on time. With clear communication, strategic follow-ups, and the right tools, you can minimize overdue invoices and maintain positive client relationships.
Invoice Fly’s Notifications can help automate your reminders, so you can focus on growing your business instead of chasing payments.
Payment Reminder Email FAQs
Your payment reminders should be clear and direct. Be sure to include:
- Invoice number and due date
- Outstanding balance
- Accepted payment methods and payment link
- Late fee policies (if applicable)
- Contact information in case the client has any questions
If your payment reminder email isn’t effective, consider the following:
- The subject line may not be clear or urgent enough
- The email might be too aggressive or too vague
- The client may not know how to pay — always include clear payment instructions
- The email lacks follow-up — send multiple reminders at different stages
- The recipient’s contact details may be outdated or incorrect
The time to send a reminder depends on the invoice’s due date:
- A few days before the due date – Friendly reminder
- On the due date – Confirmation the payment is now due
- One week overdue – A firm but polite nudge
- Two weeks overdue – Stronger reminder warning about late fees
- One month overdue – Legal action warning or final notice
If a client ignores reminders and still has unpaid invoices, follow these steps:
- Send a final demand letter with a legal action warning
- Offer a payment plan as a last attempt to settle
- Engage a collections agency for persistent non-payers
- Seek legal action if necessary, ensuring all documentation is in order
Managing accounts receivable efficiently helps prevent cash flow problems. Use automation tools like Invoice Fly’s Reporting Software to:
- Track outstanding invoices in real time
- Send automated reminders at the right stages
- Keep a detailed history of payments and client interactions
- Ensure follow-ups happen without manual effort
