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Most Used Email Templates for Chasing Payment

All businesses rely on the cash flow of incoming and outgoing payments. A business with a modest turnaround can grow quickly and be able to maintain a healthy balance for stressful financial situations. So, when payments are late, the businesses get affected badly. That is why it makes sense when business owners get worried about the cash-flow issues caused by late payments. Thus it is important for businesses to run behind clients for chasing payment that is late.

Chasing Up Late Payers

You must be thinking when you should consider your clients as ‘Late Payers’ or ‘Bad Payers’. Well, as per the definition of Late or Bad Payer is a person who is bad at paying money that they owe. If your clients are always late for sending payments and having overdue invoices, you need to consider them in your late payer’s list. You can adjust the list based on the follow-ups and according to their pattern of business transactions. Most bad-paying customer is the one who always makes late payments and mostly makes their payments after so many reminders.

Chasing Up Late Payers

If you are already expecting a late payment from a particular customer seeing from the past records or payment behavior, that’s a classic sign of a bad payer. You need to be focused on chasing up late payers from the beginning if you already know their pattern of late paying. For those tricky customers, we have highlighted some effective ways that will help you get paid on time and quicker than you used to.

Effective Ways to Chase Late Invoices

All small business owners have those few problematic customers on whom their email template reminders don’t work. Maybe their strategy of payment collection doesn’t work or their email template reminders are not that effective. In this section of the blog, we are going to give you some very effective ways that will make your collecting payment process much quicker and it will be easier for you to chase late invoices.

  1. Don’t Be Rude to Chase Your Invoices
  2. As soon as you become more experienced in your business, you must know that chasing late invoices has become an important part of your payment cycle. So, you have to be careful while asking for an invoice due for payment. In the early days, it might look rude to contact a client to ask for late payment. Now that you have completed your work, and the client is happy, you don’t need to be rude to state your payment terms while chasing your invoices. They will also understand your concern about receiving the payment. By not enduring the payment terms and conditions, it is the customer who is being rude.

  3. Clear Payment Terms at Early Stage
  4. No one likes to talk about payment of an invoice due for payment at the early stage of the project, but setting the client’s expectations at the early stage by discussing your payment terms can help you prevent further payment problems.  

    Most companies opt for a 30 days payment term, while some other companies might choose a 60 days payment term. Some companies also ask for an advance payment before starting a project. Clearly mentioned payment terms before taking up the project or even before creating an invoice for the client, makes the payment collecting process faster.

  5. Warn About Interest Charges on Late Payments
  6. Nowadays, government legislation has been introduced that allows companies to charge up to 8% + the bank base rate on the late payment or on the bounced check. It also allows companies to pass any debt recovery costs onto the customer not paying on time. If you are not sure how much interest you should charge, you can set up your own terms as long as you are following the government’s guidelines.

    For example, some people charge 2% interest on the payments made after 30 days and increase 1% if it crosses 60 days.

    Whatever you decide, you should warn your clients about your interest charges on the late payment in advance.

  7. Send a Gentle Reminder Letter
  8. When you are sending a reminder letter for the first time, you need to remember that the initial payment reminder should be gentle in tone and written in a professional way. You can simply write that the payment for the so and so project is now overdue. These simple yet effective words are enough to prompt the payment. If you are not sure about using such content, you can use Payment Reminder Templates.

  9. A Polite Call to Chase Payment
  10. Most of the late paying clients ignore an email template reminder. So it is better to make a polite phone call to chase the payment, so they won’t ignore your payment request. If you don’t get the payment after the first phone call, then you need to make a second call to ask the client if there is an issue at their end or if they are facing any technical issues while making a payment. 

    The possibility is that the client might be experiencing some cash crunch and wants some additional time to make a payment. However, talking to the client about the payment-related issues will give you a clear idea of their intentions and help you decide your next step chase the payment.

  11. What If Still Don’t Get The Payment?
  12. If you have tried all the above-given options, and the client still doesn’t pay, then you may need to continue chasing them. Don’t take much time to chase for the payment, but make sure that your client knows that you won’t let it go easily. If they promise a payment, ask for the date they might make a payment. Still, if you don’t get the payment you should cease the project until the invoice has been paid.

  13. Know Legal Rights for Late Payments
  14. After taking all the steps, you don’t get the payment, you should start researching your legal rights for the late payment. Before you engage a professional certified debt collector, you might go for a Statutory Demand (A Statutory Demand gives 18 days to resolve the payment related issues.) If that doesn’t happen, the debtor must pay in full within three more days, so a total of 21 days. Once this period is over, you can take further actions to try and get what is owed.

  15. Consider Legal Action for Unpaid Invoices
  16. You may need to consider more drastic actions like taking legal actions against the customer if they ignore all your chasing efforts. Taking legal action might build up pressure on a client and you might get the payment or the response from the client within 28 days.

Professional Payment Reminder Email Templates

Here are the most effective professional email samples that help you get paid on time and help you maintain accuracy throughout the invoicing collection process. This chasing payment email sample will help your client get a clear reminder of the actual amount, name, due date, and the possibility of late payment charges in case they don’t pay immediately.

Professional Payment Reminder Email Templates

Template 1

Email Subject Line: Your Invoice {Invoice Number} has Passed the Due Date

Message:

Hi {Client Name},

I hope you are doing well. This is just to remind you that payment on {Invoice Reference Number}, which we sent you on {Date}, has passed the due date.

I am sure you must be busy, but I would appreciate it if you look over the invoice once again when you get the chance. Please contact me if you have any queries/questions.

Thank you!

{Your Name}

Template 2

Email Subject Line: Your Invoice {Invoice Reference Number} is Overdue for The Last 30 Days

Message:

Hi {Client Name},

As per our records, we have not received the payment of {Amount} for {Invoice Reference Number}, which is overdue by 30 days. We would appreciate it if you could make a payment on an urgent basis to avoid late payment charges.

If you have already sent a payment, please disregard this email notice. And if you have lost the invoice, please let me know, we will arrange a new copy for you.

Thank You,

{Your Name}

Template 3

Email Subject Line: The Last Reminder for Invoice {Invoice Reference Number} 

Message:

Hi {Your Client Name},

This is the last reminder for the payment due on your {Invoice Reference Number}, the total amount of {Amount}, which we sent on {Date}, is due for the last 60 days. You can make payment using your preferred payment method indicated (i.e. credit cards – credit card charges may apply) in your business invoice as soon as possible to avoid any legal actions.

If you have any questions, you can contact me, I’d be happy to help you out.

Thanks,

{Your Name}

How to Prevent Late Payments in the Future?

In the majority of cases, small businesses get paid on time for the invoice without having any kind of payment reminders or court proceedings. Sometimes it is easier to prevent late payment for the unpaid invoice by simply talking over the phone and sometimes you can handle a client by just email reminders. It completely depends on how you and your customer deal in a regular way. It depends on your equation with the client and both of your mutual understanding. 

How to Prevent Late Payments in the Future

For regular late-paying customers, you need to plan in advance, and if possible try to clear out the terms of payment before starting the new project work. By following the above given effective ways can prevent the late payment for the unpaid invoice in the future. It will give you the freedom to turn late-paying customers into on-time paying customers.

Frequently Asked Questions

What do you say when chasing payments?

There are various options you can choose while chasing payments. You can simply say the payment is overdue by 10 days or you can say that you missed paying for the invoice (#number) (Project Name). Sometimes you need to use an email template that is professionally written for chasing the overdue invoices.

What does chasing the payment mean?

Chasing the payment means you are requesting for the payment the client is missed to pay. Business owners usually use payment chasing tactics to get paid. Some clients ignore paying for the customer invoices due to various reasons, that is why business owners have to face a lot of financial issues.

How do you politely ask for payment?

It is said that you should always be polite to the customer while requesting for payment. One of the best ways to politely ask for the payment is that you call a client and genuinely ask for the delayed payment. You can use various email templates that help you politely ask for the payment.

Conclusion

As we know about the loss most of the business owners have to face, we at MixBit help you chase the payment by providing the most effective email templates. Not only that we also offer professional invoice templates that will fulfill all your business needs and maintain your branding needs. We have a variety of templates and all the formats that you can tailor according to your business requirement.


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