Send professional payment reminders that get results. Free templates, email scripts, and tips for every escalation stage from friendly reminder to final notice.

Payment Reminder Template: The Complete Guide

Your invoice is overdue, but the money hasn't arrived. Now you need to write a payment reminder – professional yet firm. It's not an easy balance.

In this guide, you'll get templates for every escalation stage, the right phrases, and tips on getting paid without destroying client relationships.

Payment Reminder vs. Collection Notice

	Payment Reminder	Collection Notice
Tone	Friendly, polite	Formal, firm
Legal effect	Usually none	Establishes legal delinquency
Typical use	1-7 days past due	After 2nd reminder
Fees	None	Late fees may apply
Goal	Reminder, clarify misunderstandings	Demand payment

The Typical Collection Process

Day 1:    Invoice sent with payment terms (e.g., Net 14)
Day 14:   Payment due date
Day 21:   1st Payment Reminder (friendly)
Day 35:   2nd Reminder (firm)
Day 49:   Final Notice (last chance)
Day 56+:  Collections / Legal action

Timing is flexible. For important clients, you might wait longer. For new clients or large amounts, act faster.

Template 1: Friendly Payment Reminder (1st Stage)

═══════════════════════════════════════════════════════════════
                   PAYMENT REMINDER
═══════════════════════════════════════════════════════════════

[Your Logo / Letterhead]

[Your Name / Company]
[Address]
[Contact Information]

To:
[Client Name / Company]
[Address]

Date: [Date]
Invoice Number: [INV-2025-001]
Invoice Date: [Date]
Original Due Date: [Date]
Amount Due: $[Amount]

───────────────────────────────────────────────────────────────

Subject: Friendly Payment Reminder

Dear [Name],

While reviewing our accounts, we noticed that the invoice
referenced above is still outstanding.

If your payment has already been sent, please disregard this
notice – our messages may have crossed.

If the invoice may have slipped through, we kindly ask you to
remit the amount of $[Amount] by [New Date, 7-10 days] to:

[Your Bank Details]
Account: [Account Number]
Routing: [Routing Number]
Reference: [Invoice Number]

If you have any questions about this invoice, please don't
hesitate to reach out.

Best regards,

[Your Name]

───────────────────────────────────────────────────────────────

Alternative Phrases for 1st Reminder

Opening:

"While reviewing our accounts, we noticed..."
"This is just a gentle reminder that..."
"We wanted to bring to your attention that..."
"Perhaps our records crossed with your payment..."

Request:

"We kindly ask you to process this payment at your earliest convenience."
"Would you mind looking into this?"
"We'd appreciate if you could remit payment soon."

Closing:

"Please let us know if you have any questions."
"If you're experiencing payment difficulties, we're happy to discuss options."
"Don't hesitate to reach out if something seems off."

Template 2: Second Reminder (2nd Stage)

═══════════════════════════════════════════════════════════════
                      SECOND NOTICE
═══════════════════════════════════════════════════════════════

[Your Letterhead]

To:
[Client Name / Company]
[Address]

Date: [Date]
Invoice Number: [INV-2025-001]
Invoice Date: [Date]
Original Due Date: [Date]
First Reminder: [Date]
Amount Due: $[Amount]

───────────────────────────────────────────────────────────────

Subject: Second Notice - Invoice [INV-2025-001]

Dear [Name],

Despite our payment reminder dated [Date], we have not yet
received payment for the invoice referenced above.

We hereby request that you remit the outstanding amount of

                     $[Amount]

by [Date, 7-10 days] to our account:

Account: [Account Number]
Routing: [Routing Number]
Reference: [Invoice Number]

If you dispute this invoice or are experiencing financial
difficulties, please contact us immediately so we can find
a solution together.

Failure to pay by the stated date may result in additional
collection actions.

Best regards,

[Your Name]

───────────────────────────────────────────────────────────────

Alternative Phrases for 2nd Reminder

Opening:

"Despite our previous reminder, payment has not been received..."
"We regret that we must contact you again regarding..."
"Unfortunately, the outstanding balance remains unpaid..."

Demand:

"We request that you remit payment by [date]."
"Please arrange for payment immediately."
"We expect to receive payment by [date]."

Consequences:

"Failure to pay may result in further collection actions."
"Without payment, we may need to pursue additional remedies."
"We hope to resolve this without further escalation."

Template 3: Final Notice (3rd Stage)

═══════════════════════════════════════════════════════════════
          FINAL NOTICE BEFORE FURTHER ACTION
═══════════════════════════════════════════════════════════════

[Your Letterhead]

SENT VIA CERTIFIED MAIL / EMAIL WITH READ RECEIPT

To:
[Client Name / Company]
[Address]

Date: [Date]
Invoice Number: [INV-2025-001]
Invoice Date: [Date]
Original Amount: $[Amount]
Late Fees: $[Amount]
Total Due: $[Amount]

───────────────────────────────────────────────────────────────

Subject: Final Notice - Immediate Payment Required

Dear [Name],

Despite our previous notices dated [Date of 1st] and
[Date of 2nd], we have not received payment for the
outstanding invoice.

This is your FINAL NOTICE before we pursue further action.

You are hereby requested to remit the total amount of

                     $[Total Amount]

consisting of:
• Original invoice amount:     $[Amount]
• Late fees/interest:          $[Amount]

by no later than

                     [Date, 7-10 days]

to the following account:

Account: [Account Number]
Routing: [Routing Number]
Reference: [Invoice Number]

If payment is not received by the stated date, we will
proceed with one or more of the following actions WITHOUT
further notice:

□ Refer the account to a collection agency
□ Initiate legal proceedings
□ Report to credit bureaus (where applicable)

Additional costs resulting from collection or legal action
will be your responsibility.

If you believe this invoice is incorrect or need to discuss
payment arrangements, contact us IMMEDIATELY.

Regards,

[Your Name]

───────────────────────────────────────────────────────────────

Email Templates

Not every payment reminder needs to be a formal letter. Emails are often faster and more effective.

Email: 1st Reminder (Friendly)

Subject: Quick reminder: Invoice [INV-2025-001] from [Date]

Hi [First Name],

Hope you're doing well!

I noticed that invoice [INV-2025-001] from [Date] for
$[Amount] is still open. The payment was due on [Date].

If you've already sent the payment, please ignore this –
our emails probably crossed. If the invoice got lost in
the shuffle, I've attached it again.

Payment info:
Account: [Account Number]
Routing: [Routing Number]
Reference: [INV-2025-001]

Let me know if you have any questions!

Best,
[Your Name]

Email: 2nd Reminder

Subject: 2nd Notice: Invoice [INV-2025-001] - $[Amount] due

Hi [First Name],

Following up on invoice [INV-2025-001] again. The $[Amount]
payment still hasn't come through.

I sent the first reminder on [Date].

Could you let me know when I can expect payment? If there's
an issue, I'm happy to discuss a payment plan.

I'd prefer not to have to escalate this further.

Payment info:
Account: [Account Number]
Routing: [Routing Number]
Reference: [INV-2025-001]

Thanks,
[Your Name]

Email: Final Notice

Subject: Urgent: Final notice before collections - [INV-2025-001]

Hi [First Name],

This is my third email about invoice [INV-2025-001].
The $[Amount] has been overdue since [Date].

I need you to pay by [Date].

After that, I'll have to turn this over to a collection
agency. The additional fees would be added to your balance.

If you can't pay or don't believe you owe this, please
contact me TODAY so we can work something out.

Account: [Account Number]
Routing: [Routing Number]
Reference: [INV-2025-001]

[Your Name]

Legal Basics (US Context)

When Does Late Payment Occur?

Payment is considered late when:

The due date stated on the invoice has passed
Any grace period (if offered) has expired
The client has received the invoice

Late Fees and Interest

You can charge late fees IF:

Your contract or invoice stated late fees would apply
The fees are reasonable (typically 1-2% per month)
State laws permit it (varies by state)

Common structures:

Flat fee (e.g., $25 after 30 days)
Percentage (e.g., 1.5% per month)
Daily rate (less common)

Important: Always disclose late fee terms BEFORE the invoice is due.

Collection Costs

If you pursue collections, you may be able to recover:

Collection agency fees (typically 25-50% of debt)
Legal fees (if you go to court)
Court costs

Note: Check your state's laws on collection cost recovery.

Tips for Successful Collections

1. Act Quickly

The longer you wait, the less likely you'll get paid. Send the first reminder 5-7 days after the due date.

2. Stay Professional

Even at the final notice stage: no insults, no threats, no accusations. Stay factual and professional.

3. Document Everything

Keep a timeline:

When was the invoice sent?
When was it due?
When were reminders sent?
Were there any responses?

4. Pick Up the Phone

Before the 2nd notice: a quick phone call often resolves more than three emails. There might be a misunderstanding or temporary cash flow issue.

5. Offer Payment Plans

If the client can't pay in full, offer installments. Getting paid over 3 months is better than not getting paid at all. Document any agreement in writing.

6. Send Final Notice via Certified Mail

Before escalating to collections, send the final notice via certified mail. This provides proof of delivery.

Common Mistakes to Avoid

Mistake 1: Waiting Too Long

Problem: First reminder after 3 months → Client thinks they don't have to pay.

Better: First friendly reminder after 7 days.

Mistake 2: Getting Emotional

Bad:

"We're extremely disappointed that despite our great work, you haven't paid..."

Better:

"The outstanding balance has not yet been received. Please remit payment by [date]."

Mistake 3: Vague Deadlines

Bad:

"Please pay soon."

Better:

"Please remit payment by February 15, 2025."

Mistake 4: No Proof of Delivery

Problem: At collections: "I never received any reminders."

Better: Email with read receipt or certified mail.

Mistake 5: Ignoring Disputes

Problem: Client says the work was defective. You keep sending reminders.

Better: Address the dispute first, then continue collections if unresolved.

When to Escalate

Collection Agency Makes Sense When:

Amount is over $200-500
All reminders have failed
No response from client
You don't have time to pursue further

Small Claims Court When:

Debt is clear and documented
Amount is under your state's limit (varies, often $5,000-$10,000)
You know the debtor's correct information

Attorney When:

Client disputes the debt
Complex legal issues involved
Large amounts (typically over $5,000)
You need to sue in regular court

Prevention: Best Practices

The best payment reminder is the one you never have to send.

Before the Project

Check client references
Require deposits (30-50% upfront)
Have clear payment terms in your contract

On the Invoice

Clear due date ("Due: February 15, 2025" not "Net 30")
Multiple payment options (ACH, credit card, check)
Late fee policy stated
Contact info for questions

During the Project

Invoice promptly after milestones
Don't deliver final work until paid (when possible)
Build relationships that make clients want to pay

Checklist: Before Sending

Formal elements:

Content:

Reference to previous reminders (if applicable)
Specific payment deadline
Consequences stated (for 2nd+ reminders)
Contact info for questions

Legal:

Late fees calculated correctly (if applicable)
Proof of delivery possible (email/certified mail)
Compliant with state collection laws

Conclusion

Payment reminders are part of doing business. With the right templates and a structured process:

Act quickly – Remind after 7 days past due
Stay professional – Factual, not emotional
Escalate gradually – Friendly → firm → final
Document everything – Keep proof of all communications

The most important tip: Work preventively. Clear payment terms, deposits for new clients, and milestone payments for large projects dramatically reduce unpaid invoices.

Professional from the Start

The best payment reminder is the one you never have to write. With clear proposals, transparent payment terms, and professional invoices, you minimize late payments from the beginning.

SimpleProposals helps you appear professional from the first contact – from proposal to invoice.

Create professional documents now

Payment Reminder Template: Professional Examples & Email Scripts