How to remind clients to pay: payment reminder messages

Payment reminder messages could be the simple solution to the problem of late customer payments. Payment reminders work wonders for your cash flow, productivity, and profitability.

That said, manually requesting late payments from customers can be draining and time-consuming. The right software can automate and streamline the process and save you from the tedious chase. When done correctly, an automatic payment reminder can gently nudge your clients back on track without denting those valuable relationships.

In this guide, we explore:

• Why payment reminders are crucial for businesses
• Best practices for effective payment reminders
• Types and examples of payment reminder messages
• Choosing the right payment reminders software

Why payment reminders are crucial for businesses

According to a PYMNTS study, delayed payments are a consistent issue for up to 93% of companies, especially if they rely on manual processes instead of automated systems.

Regardless of the reason behind late payments, they strain your cash flow and ultimately hurt your bottom line. Uncertainty in cashflow makes it difficult to plan and execute your business strategies, and it can make reconciliation in accounting even more challenging. On top of that, chasing down those overdue invoices can be awkward and gobble up valuable time that would have been better spent growing your business.

For those reasons, payment reminder messages are more than just a courtesy. They’re vital for maintaining a steady cash flow and keeping your business running smoothly. Learn more about cash flow planning for SaaS and cash flow management for ecommerce businesses.

Best practices for effective payment reminders

How do you remind clients to pay without jeopardizing existing connections? You must strike the right balance between friendly, firm, and professional. These tips will help you achieve that balance and increase your chances of receiving prompt payments. They should form the basis of your payment reminder strategy.

1. Maintain a professional tone of voice

Your tone of voice plays a significant role in any business communications, but even more so when it comes to requesting payment.

You want to be clear and direct, but no client wants to feel pressured or accused, even if they owe you money. Maintaining a professional but respectful tone throughout your payment reminder messages is the only way to do that.

On the one hand, that means accusatory or threatening messages are a bad idea. On the other, you must keep overfamiliarity aside. Casual messages are unlikely to get your client to take you seriously.

2. Set clear payment expectations

Clarity is essential when it comes to dealing with outstanding payments. Bringing your clients' attention to the issue is great, but they're more likely to pay when they know when you expect an unpaid invoice to be addressed.

So, you don't want to send an email vaguely reminding your client that "Your payment is due soon. Please take care of it at your earliest convenience."

A more appropriate past due invoice reminder would contain a due date and payment information, as well as any payment deadlines.

With that in mind, keep it short and sweet. Several pages of an email to remind your clients of their overdue payments will do no good for your customer relationship.

3. Provide precise payment details and instructions

Lay everything out. What are your terms? Do you expect the outstanding balance within a specific timeframe? What payment methods do you accept, and what are your preferred methods? What’s the payment link? If you use digital invoices, what are the steps to take?

Providing all the necessary details further introduces just the right level of urgency to nudge your clients into settling.

4. Utilize multiple communication channels

Payment reminder emails are the most common approach. They're great because it's easy to keep a written record and emails are easy to automate. Also, with email tracking software, you can effectively monitor the performance of your reminders.

However, it's worth noting that your clients are busy, and an email to an overflowing inbox can easily be overlooked. So, you should consider using other forms of communication to your advantage as long as you know when to use them.

For example, SMS messages are an excellent channel for quick, friendly reminders, especially when you share a close relationship with your client. A phone call is another great way to add a personal touch. It also works for significantly late invoices or bigger amounts.

5. Use payment reminder automation

Automation is all the rage these days and rightfully so. Whether you’re just starting a dropshipping business or are already running an established brick-and-mortar store, automation can do wonders for you and your company.

Granted, manually tracking unpaid invoices and typing out individual reminders may still work, even though they’re decidedly tedious tasks. Still, wouldn't your limited time be better served focusing on more productive tasks?

Payment reminder software makes it so you can streamline the entire process and stop wasting time on your spreadsheets. You can set up automatic reminders that go out at specific, strategic intervals. And because these solutions can be customizable to your brand, you can set them up to send personalized messages as gentle nudges.

6. Consider the timing and frequency

Both these factors can significantly affect the effectiveness of your reminders. Send them too early, and you risk coming across as pushy and irksome. If you wait too long, clearing your outstanding invoice slides further down your clients' to-do lists. It could also mean they don't feel any urgency.

As for frequency, bombarding clients with payment reminders all but guarantees that you're damaging your relationship. But again, too few reminders may not kickstart action.

At the end of the day, it's a delicate balancing act. A good rule of thumb is to send:

• A friendly reminder before the due date for a heads-up
• A polite reminder on the due date to reinforce your expectations
• Follow-up reminders for overdue invoices at intervals. Highlight the fact that the due date is past for a touch of urgency, but it's still important not to be overly aggressive.

Types and examples of payment reminder messages

Understandably, the tone and content of an overdue invoice reminder email can be markedly different depending on the stage of the invoice. That means a gentle reminder a few days before the due date will contrast starkly with one a few days before a legal action deadline.

Here are some payment reminder email templates showing what they can look like at various stages.

We won't include it in the reminder email examples below, but make sure to conclude each message with a polite closing like "Yours sincerely" or "Kind regards."

Before the due date

Hi [client name],

Just a gentle reminder that [invoice number] for [amount] will be due on [due date].

Please look through the invoice [invoice direct link] when you can. We will be happy to answer any questions. Thank you for your timely payment.

On the due date

Hi [client name],

Just a quick reminder that your payment of [amount] is due today. Please let us know if you experience any issues with completing the payment. Thank you.

Notice how you can encourage action without seeming harsh?

After the due date

Here, firmly emphasize the overdue status of the invoice, but be careful not to let your irritation seep into the payment request.

Hi [client name],

We're writing to follow up on the payment for [invoice number] of [amount] as we noticed it is now past due.

We understand that invoices can sometimes be mistakenly overlooked, but would appreciate it if you could arrange for payment as soon as possible. You can view the invoice link here [direct link].

Second overdue reminder

Firmer language is warranted at this point, but don't abandon civility.

Hi [client name],

We are writing to you again about the [invoice number] for [amount]. The due date was [date], but we are yet to receive payment.

Please remit as soon as possible to avoid escalation.

You can view the invoice here [direct link].

If you have already submitted payment, please provide us with the payment information.

Final notice before escalation

Still no payment made? This final reminder should convey even more urgency alongside an outline of your next steps.

Email subject: Urgent: Final Notice - Overdue invoice

Hi [client name].

This is a final notice regarding [invoice number] for [amount]. The due date was [date], but we have still not received payment.

After attempting to contact you multiple times over this outstanding balance, we are now forced to consider other options to recover the debt. Our next steps are [highlight your next course of action].

Please get in touch with us within [number of] days to discuss payment options, as we would prefer not to disrupt our positive relationship. Thank you for your prompt attention.

Choosing the right payment reminder software

The right payment reminder software can enhance your overall invoicing process as it enables you to automate your invoicing, which reduces errors and saves you time. Before jumping in, there are several factors to consider.

Identify your business needs

Take some time to define your business needs and requirements with respect to payment reminder software. Here are some of the questions to consider:

• What's the size of your business and client base?
• How many invoices do you send out
• monthly? How many are overdue on average?
• What payment methods does your business accept?
• Do you track your upcoming payments and days overdue?
• How tech-savvy are you or your teams?
• Do you manage invoices across various regions or currencies?

The endgame is to fully explore your needs so you can narrow down your options.

Prioritize essential software features

Since payment reminder tools are not all created equal, zero in on those with the features to address the needs you've just identified.

They all come with automated payment reminders as a core feature. Beyond that, consider features such as customizable payment reminder texts, or tracking and reporting financial data. Don’t forget support for various communication channels and payment options.

Your specific needs will help you decide which features are essential, nice-to-haves, or unnecessary bells and whistles.

Consider usability and user experience

A payment reminder tool could be brimming with features and yet be barely usable. After all, you don't want to waste time struggling with clunky or complicated interfaces or overwhelming features. That would defeat the time-saving benefit of going automated.

So, ideally, you should settle on an easy-to-use software that actually enhances your workflow.

Evaluate integration with existing systems

Nothing quite beats seamless integrations for making your operations run smoothly.

Let's say your payment reminder software syncs effortlessly with other existing systems like your business management platform, accounting software, CRM, email solutions, and payment gateways. Without a doubt, such strong integrations will save a ton of time and effort. It's also bound to drastically reduce errors.

Compare pricing plans

Carefully examine your budget and the value each plan offers. Again, your previously identified business needs play an essential role here.

Some plans may offer exciting features and options, but they shouldn't sway you if they don't fit your present requirements. On the flip side, you may need to top up your budget for a plan that aligns with your business growth.

What Quaderno can do for you

Quaderno invoicing software allows you to assign payment deadlines, draft your own reminder messages, and schedule reminders at a frequency that makes sense for your business. Plus, Quaderno’s solution helps you handle invoicing at scale, no matter where your customers are located in the world.

Quaderno manages everything effortlessly on one centralized platform with a user-friendly interface that makes it easy for you or your employees to manage. The app provides all of the following:

• Correct tax calculations
• Automated invoices
• Global invoicing formats
• Automatic translation
• Customizable branding
• Customer billing dashboard

To try out automatic invoices and automatic payment reminders for your business – plus a suite of tax compliance features – start a free trial of Quaderno