Several market studies indicate that A staggering 1 in 10 bills aren’t paid on time, but 10% of owed payments are never made, adding to the bad debt pile and costing international businesses millions of dollars.

So, how can companies attempt to recover unpaid invoices? For many, the initial step is to write and email the client informing them that the payment is still owed and is needed as soon as possible. But regrettably, the narrative doesn’t end there because repeated follow-ups frequently result in silence (or subsequent payment).

It’s time to modify your accounts receivable strategies if you have unsuccessfully pursued a customer for an overdue unpaid invoice on multiple occasions. You tried contacting your client several times to get them to pay their past-due payment after the first three email reminders, but you were unsuccessful. The following email offers your client one final chance to make a considerate payment while increasing the seriousness of the delay.

The phrase “as a matter of urgency” in the email’s body and the word “OVERDUE” in the subject line make the urgency very evident.

Subject: [Your company’s name] <> [invoice reference number]: OVERDUE
Body:

Hi [Recipient’s first name],

I hope you are well.

Regarding our invoice with the reference number [invoice number], which was due for payment on [date due], we have not yet received payment from you in the amount of [amount owed on invoice].

If you could let me know when we should anticipate receiving payment, I would be extremely grateful.

For your convenience, we now have the option of paying your bill online! You can review your invoices and make a payment by clicking the link here.

Best regards,

[Sender’s first name]

When an account becomes overdue despite multiple reminders, there is a significantly reduced chance of being paid. Adding follow-up phone calls to your sequence and sending a stronger-worded email are appropriate actions. If at all possible, send the email to a manager in addition to the main contact.

Subject: [Your company’s name] <> [invoice reference number]: MULTIPLE LATE OVERDUE
Body:

Hi [Recipient’s first name],

This matter requires your IMMEDIATE ATTENTION. We have contacted you numerous times regarding a long overdue account [amount owed on invoice].

[Account Number, Due Date, Amount, Late Fee]

If you could let me know when we should anticipate receiving payment, I would be extremely grateful.

For your convivence, we now have the option of paying your bill online! You can review your invoices and make a payment by clicking the link here.

Best regards,

[Sender’s first name]

By the time you get to this stage, your client has been avoiding payment reminders and not responding to your emails s for days or even months. The client had multiple opportunities to pay the total owing and overdue payment dates before the due date. To put it another way, this is the worst-case scenario.

Subject: [Your company’s name] <> [invoice reference number]: MULTIPLE LATE OVERDUE LEGAL
Body:

Hi [Recipient’s first name],

This is our final notice regarding your delinquent account with us. We have not received a response regarding your 90-day overdue invoice #[Invoice Number].

We must receive payment from you within 15 days of receiving this notice to avoid further legal action from an outside agency.

As a result, you shall incur late charges per our agreed terms on your account.

For your convenience, we now have the option of paying your bill online! You can review your invoices and make a payment by clicking the link here.

Best regards,

[Sender’s first name]

At this phase, after unsuccessfully attempting to collect an overdue payment from your client on multiple occasions, you should inform them that you are exploring additional options.

Remember that you can legally apply interest and penalties to a late payment. In your letter, specify if you intend to use these rights for your company. Before you pursue legal action, this letter gives your client one last chance to pay. This email emphasizes how serious the situation is.

Subject: [Your company’s name] <> [invoice reference number]: MULTIPLE LATE OVERDUE FINAL LEGAL NOTICE
Body:

Hi [Recipient’s first name],

Further to my previous correspondence, I’m contacting you once again on behalf of [your company] concerning the following outstanding invoice:

[invoice ref number] / [invoice balance]

This invoice was due on [due date] and remains unpaid past multiple due dates.

We have made repeated attempts to get in touch with you, but you have not responded. As a result, we will soon start legal action to recover the unpaid amount owed to [your company].

We will close this case without the necessity for legal action upon receipt of immediate payment.

For your convenience, we now have the option of paying your bill online! You can review your invoices and make a payment by clicking the link here.

Best regards,

[Sender’s first name]

When a customer pays your invoice, whether it was early, on time, or two weeks late, you should send them an email saying, ‘thank you for paying.’

This will surely have a beneficial impact; perhaps due to your courteous handling of the situation, they will try to pay on time in the future. Or they’ll value you acknowledging their intention to make the payment, further strengthening the bond, and ensuring that subsequent payments are made on schedule.

‘Thanks for the payment’ emails can be used to convert clients to direct debit or secure additional sales in addition to helping to improve future payment habits.

Subject: [Your company’s name] <> [invoice reference number] Body:

Hello [Recipient’s first name],

I just wanted to drop you a quick note to let you know that we have received your recent payment in respect of invoice [invoice reference number].

Thank you very much. We really appreciate it.

Best regards,

[Sender’s first name]

Subject: [Your company’s name] <> [invoice reference number]: DISPUTE RECEIPT ACKNOWLEDGEMENT
Body:

Hello [Recipient’s first name],

I wanted to quickly let you know that we have received your request to look into the invoice’s discrepancies (invoice reference number).

I’m very sorry you had this experience. We have informed the relevant departments and are working to review the dispute(s). As soon as the issue is addressed, we’ll let you know.

Best regards,

[Sender’s first name]

Subject: [Your company’s name] <> [invoice reference number]: DISPUTE RESOLUTION
Body:

Hello [Recipient’s first name],

I’m very sorry you had this experience. We acknowledge your dispute and the error in the invoice [invoice reference number].

We did a thorough investigation, and this was likely caused by [add brief explanation], but regardless, we should have handled this better. However, now that we have found the root of the problem, we have informed the relevant departments and are working to rectify the mistakes. As soon as the issue is addressed, we’ll let you know.

We’ll be sure to use this experience to grow and learn as a team which I’ve passed this along to my team. We appreciate your patience. Please let me know if there is anything else I can do for you.

Best regards,

[Sender’s first name]

Subject: [Your company’s name] <> [invoice reference number]: DISPUTE RESOLUTION
Body:

I sincerely regret the inaccuracy in invoice #[Invoice Number].

I am appreciative of you letting us know about the invoice issue. We are canceling the invoice and issuing you a new one that includes the correct amount and any applicable taxes.

You can make the payments only after you receive the updated invoice. Please feel free to call the number shown above if you have any more inquiries concerning the invoice or its contents.

I believe this will satisfy you as a resolution to the dispute.

I appreciate your assistance in resolving this dispute. We apologize and look forward to continuing to be of service to you.

Best regards,

[Sender’s first name]