How to Write an Overdue Invoice Letter?

Chasing down payment from clients isn’t anyone’s favorite part of running a business, and it can take up a lot of time. Yet, it’s an integral part of a business’s accounts receivable process and a necessary step toward healthy cash flow. It also helps to be as clear and polite as possible in your communications with your customers.

The first overdue invoice reminder you send should remind the client of your payment terms and ask them to pay their outstanding balance immediately to avoid late fees. You should also provide a link to an online payment page to make the process as simple as possible for your customer. This is an ideal moment to reiterate that your company’s policies are based on strict payment terms and that failing to comply with them can result in legal action.

Next, you can send a second overdue invoice or past due accounts receivable collection letter reminder with a bit more urgency and include the amount that’s overdue in your subject line to emphasize how much is owed. You should also remind your client that your company will charge a late fee of %% after a certain number of days of nonpayment.

If the above tactics don’t work, you can consider sending a final overdue invoice reminder. At this point, you’ve already reached out to and asked the customer to pay their outstanding balance a few times without success. This should serve as a final notice that you will have to escalate your efforts by turning over their account to collections if they don’t pay their debt.