Table of Contents
- 1 Payment Reminder Letter
- 2 What Should Be Included In The Reminder Letter
- 3 When To Send Payment Reminder Letter
- 4 Things To Keep In Mind While Writing A Payment Reminder Letter
- 5 How To Write The Payment Reminder Letter
- 6 Tips To Get Overdue Payment
A payment reminder letter is an official document sent by a company or individual to remind the customer about the payment of the overdue invoice. It is a legal process to get the money by sending a friendly payment reminder letter that you are owed. Download free overdue payment reminder letter in PDF and Word formats. You can see the reminder letter samples and examples to understand it clearly and efficiently. Below we share a complete guide that helps you to get paid quickly.
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Payment Reminder Letter
A payment reminder letter is called a reminder letter that is used to get paid off an overdue invoice that you owed. When a customer doesn’t pay you on time, a letter is sent as a reminder to get money for your service or product. It is the best, quicker, and easier way to ask someone for payment. Keep calm; use positive words in a friendly and firm tone in your demand letter. One of the most difficult tasks in a business is to ask for payment to the customer when the due date is passed. You can send a copy of the invoice with this letter that states due to details, method of the payment, and the type of service and goods.
Companies or individuals send payment demand letters before the due date to remind the amount. It may also send when the due date is passed. If you are writing a payment letter professionally, it is essential to write this by following the standard format like MLA format. You can find here outstanding payment reminder letters in PDF, Word, and available in every format which you prefer. These free printable templates help you to craft a well-formatted letter. Instead of sending a letter, you can ask for the payments from your client by crafting a payment reminder email. You can also find here a sample and example of a reminder email that helps you to understand it easily.
What Should Be Included In The Reminder Letter
Customers are the most important stakeholder of any project. All of your hard work, investment are to provide a better service to the customer. A company or organization is nothing without its employees; it is vital to appreciate the hard-working employee with a recognition letter to increase the productivity of your company. Some people are too harsh when they ask for the overdue payment. It is a crucial task to retain existing customers. Hence it is essential to send a polite payment reminder letter. Key elements of this letter are as follows:
- Name of the sender: The name of the individual or company who wants payment of their service or products.
- Sender’s address: Address of the company
- Contact details: The phone number, email address, fax number, and web address if you have.
- The date: When the email or letter is crafted.
- Name of the receiver and contact details: After the date, write the name of the receiver, address, phone number, and other contact details.
- A professional and positive salutation.
- State the purpose of this letter in the body section with detail politely.
- Deadline date
- Closing words
- Signature at the end of the letter.
A letter with these components helps you to make a strong letter; you can download free templates for the outstanding payment.
When To Send Payment Reminder Letter
It’s a good practice to send a letter before the 2 or 3 days of the last date mentioned on the invoice. There is a chance that the customer is angry by receiving a reminder letter before the due date. It would be best if you kept calm during this legal process. It is necessary to send a payment reminder letter on an accurate time. It is standard to send payment within the 30 days of receiving an invoice or delivery package. You can see our complete article of packing slip with a vast collection of its free templates.
- It should be sent before the 2-3 before the due date mentioned on the invoice.
- If the customer does not make the payment after the due date, send a second reminder letter after the 2-3 days of the expected time.
- Send the third reminder letter when a week has passed after the due date.
- Send a final reminder letter after the 14 days of the due date and state clearly about the legal action that you will take if the customer does not make the payment.
- If the payment is not received after the final demand letter, you can go for some legal process to get the money that you are owed.
- It is standard to send a Thank you letter when you receive the invoice payment.
You can find here the friendly payment reminder samples and templates to ask your customers for payments politely.
Things To Keep In Mind While Writing A Payment Reminder Letter
Essential things to keep in mind while writing a payment demand letter to the customer. These things are as follows:
- For the success of any business, it is essential to build a great relationship with your client, but some people being rude and harsh while asking for the payment of the service and goods. Use positive words and follow the polite rule while writing a demand letter.
- Use positive words like “thank you” or “we request.”
- Clearly state the purpose of this letter.
- Attach a copy of the invoice for prompt payment.
- Confirm that the customer receives the invoice on time.
- In the body of the letter states clearly how much the customer will pay.
- Also, include the method of payment with bank details of yours.
- Write the deadline in a soft but professional way within which the customer should make the payment.
- Ask to give a response to this letter.
- Make the header of your write that shows a clear purpose of this letter. It should be written in a way that shows how many times you send the letter like “second letter for payment” or “final payment reminder letter.”
To make your work easier and simpler, we share a collection of persuasive payment reminder letters before the due date, after the due date, and before some legal actions. You can download these editable letter templates according to your needs.
How To Write The Payment Reminder Letter
It is one of the crucial tasks to make new clients for your business but the hard one to maintain this relationship with the existing customer. It is common to receive late payments from customers. For that purpose, the company or individual writes a reminder letter when the due date for the invoice payment is near or passed. For some people, it isn’t very easy to write a payment reminder letter to a client. Below we share a few easy steps which help to make an effective letter for outstanding payments quickly. Follow these steps to get overdue payments from the customer. These are:
Letterhead of the reminder letter
The letterhead of a letter is the most important section and be crafted carefully because it states who is the sender of this letter. A payment reminder letter may be sent from the individual or company. Include the name of the sender, address, phone number, and email at the letterhead by following the MLA format. After the details of the sender, write the date of sending this letter.
Find the name of the person from whom you are asking for money or write the name of their position with the title of Mr, Mrs, and Miss as “Mr manager,” “Mrs john.”
State the purpose of this letter in the first paragraph
Usually, in the first paragraph of any letter, we find the primary purpose of the letter. It is standard to state the purpose of the letter in the first paragraph of the letter.
Mention the extra fees for late payment in the 2nd paragraph
There is a rule in the market that the customer pays extra charges for late payment. Write the amount in digits that you owed and state separately the amount with extra fees. For example, the amount of the service or goods that the customer will pay is 2000$, plus charges of late payment are 100$. State that the customer will pay 2100$ when the due date is passed.
Include payment detail and deadline in the third paragraph
Write your bank details with a method that the customer will use for payment. Also, include the timeframe within which the customer made the payment.
Close the letter
It is good practice to use positive words as the closure of the letter.
Sender’s name with signature
Write the sender’s name at the end of the letter with the signature to make it an official letter.
Tips To Get Overdue Payment
Establishing great communication with your customer is the key to any successful business. Follow these steps to chase your invoice by being rude to the customers.
Send a reminder letter.
First of all, send a reminder letter to your customer. It is an easier, simple, and quicker way to get overdue payment. Make sure to post it at a specific time like 1-2 days before or after the 3-4 days of the due date.
Your polite behavior builds a great relationship with your customers. Be respectful in your words. Use some positive words in your letter and convey your message in a soft and polite manner.
Speak directly with the client
To chase your invoice quickly, pick up a phone, and make a call to your customers. Speak directly with your client instead of writing a letter or sending a demand email. Tell your client about the terms in case of late payment.
Notify customer about legal action
If the due date is passed and the client doesn’t make the payment, they are owed. Tell them about the legal action in the final reminder letter.
Warn about your extra fees
Before 2-3 days of due date, write a reminder letter to your customers in which clearly states about the extra fees in case of late payment.