11 Email Templates for Collecting Accounts Receivable from Customers

When you’re running a business, it’s important to stay on top of your accounts receivable (AR) to ensure that your cash flow remains steady.

This usually entails having visibility into customer payments and, more importantly, overdue invoices.

Are some customers delaying payments? Are some others defaulting?

While knowing this is essential, how do you solve such scenarios?

Leveraging email in accounts receivable collections is a critical component of effective cash flow management.

That’s because they provide a quick and efficient means of communication with customers.

By sending timely and professional reminders, emails can help with prompt payments and prevent overdue accounts. They also offer a clear and easily accessible record of communication, helping streamline the collection process and avoid misunderstandings.

Table of Contents

• What are Accounts Receivable?
• How to Write an Email to Collect Payment from Customers?
• 11 Email Samples to Recover Past-Due Invoices
• How to Setup Accounts Receivables Collection Templates

What are Accounts Receivable?

Accounts Receivable refers to the money a business is yet to receive from its customers for goods or services rendered. In other words, it is a record of all unpaid customer invoices.

The process of collecting payment for these outstanding invoices is known as Accounts Receivable management. This includes communicating with your customers to clear pending dues from their end.

Billing software can help streamline the process of collecting accounts receivable by providing accurate and timely billing statements to customers, making it easier to manage and track payments.

Unpaid dues from customers can have a significant impact on your business in several ways:

• Cash Flow Issues: Uncollected accounts receivable can lead to cash flow problems and make it difficult for a business to pay its own bills or make investments.
• Decreased Profitability: When accounts receivable remain unpaid, it reduces the amount of revenue available to the business, impacting its profitability.
• Damaged Credit: Unpaid accounts receivable can harm a business’s credit rating and make it more difficult to secure financing in the future.
• Strained Supplier Relations: Unpaid accounts receivable would make it difficult for you to pay your suppliers for the necessary goods and services to run your own business. In extreme cases, it can create a domino effect that causes suppliers to miss their own payment deadlines.
• Legal Issues: In extreme cases, failing to collect accounts receivable before the final notice due date can result in legal action and the potential for significant financial losses.

How to Write an Email to Collect Payment from Customers?

Now that we understand the importance of timely payments keep the following tips in mind writing a collections email to a customer:

• Be clear and direct: State the purpose of the email in the subject line and opening sentence.
• Provide context: Give a brief background on the payment due, including the invoice number and amount owed.
• Be polite: Use a friendly and professional tone throughout the email. Avoid using aggressive language.
• Offer payment options: Provide details on how the recipient can pay, including the due date, acceptable forms of payment, and how to access online payment portals.
• Include supporting documents: Attach any relevant invoices, receipts, or payment reminders to the email.
• Set expectations: Let the recipient know if there will be any consequences for late payment, such as interest or late fees.
• End positively: To ensure both of you are on the same page, thank them in advance for the prompt payment.
• Follow-up: If you’ve not received the payment yet, send a polite follow-up email. Repeat as needed.

Manage your finance operations from Gmail

To create invoices that are professional and reflect your brand, using free editable invoice templates can make this process seamless and efficient, allowing you to focus more on growing your business while ensuring financial accuracy.

11 Email Samples to Recover Past-Due Invoices

There’s no one set way to draft a payment follow-up email to a client. While emails must be respectful and professional, they may differ in style or the message communicated. To show you how, here are 11 different email templates to chase overdue payments.

Email templates using positive reinforcement

Using positive reinforcement in your communication with defaulting customers shows that you value your customer and are committed to maintaining a good relationship with them. It demonstrates that you understand the customer’s situation and are working with them to find a solution. This approach can help diffuse any frustration or resentment the customer may be feeling.

Here are a couple of templates that can help you achieve this.

Template 1:

Subject Line: A Reminder to Keep Enjoying Our Services

Dear [Customer Name],

I hope this email finds you well. We value your relationship with us, and we hope that our services have been helpful to you. We understand that things can get busy, and we don’t want this to slip through the cracks.

By taking care of your outstanding payment of [amount] for [invoice/payment], you will be able to continue to enjoy our services without interruption. Your prompt attention to this matter will help us keep our records up to date and ensure that you receive the best possible service.

Thank you for your prompt attention to this matter.

Best Regards
[Your Name]

Template 2

Subject Line: An Opportunity to Keep Your Account in Good Standing

Dear [Customer Name],

Hope you’re keeping well. I wanted to reach out and remind you about the outstanding payment of [amount] for [invoice/payment].

By taking care of this payment, you will be keeping your account in good standing and ensuring that you continue to receive the highest level of service from us. Your prompt attention to this matter is greatly appreciated.

If you have any questions or concerns, please don’t hesitate to reach out. We appreciate your cooperation and look forward to continuing our relationship.

Your swift attention to this matter would be much appreciated.

Best regards,
[Your Name]

Concise and professional email templates for payment follow-up

When sending a payment reminder email, it’s important to choose the right tone. You want to be professional, respectful, and polite while also being clear and direct about the payment request. Avoid using language that may be perceived as confrontational or aggressive.

Here are a few templates that can help you achieve the right tone.

Template 3:

Subject: Invoice Payment Request

Dear [Customer Name],

I hope this email finds you well. I wanted to remind you that your [invoice/payment] for [amount] is due today. If you could take a moment to take care of this, it would be greatly appreciated.

Thank you for your prompt attention to this matter.

Sincerely,
[Your Name]

Template 4:

Subject: Invoice Payment Reminder

Dear [Customer Name],

This notice is to inform you that your account is now [number of days] past due the payment date. The outstanding balance is [amount]. We kindly request that you take action to resolve this matter as soon as possible.

If you have any questions or concerns, please let us know, and we’ll be happy to assist you.

Sincerely,
[Your Name]

Email template about multiple payment options

Some customers may prefer to pay via credit card, while others may prefer to pay via bank transfer. Communicating about different payment options can make it easier for customers to make payments and can increase the chances of collecting your pending accounts receivable in a timely manner.

Template 5

Subject: Payment Channels for Invoice [Invoice Number]

Dear [Customer Name],

I hope this email finds you well. I am reaching out with reference to Invoice [Invoice Number], which has not been paid despite its due date of [Due Date]. I understand that paying outstanding debts can be a challenge, and I am writing to offer you different payment methods.

At [Company Name], we value your business and are committed to making it as easy as possible for you to pay your outstanding debt. To that end, I would like to remind you that we offer a variety of payment channels, including:

1. Direct Deposit: You can make a direct deposit into our bank account. [Insert bank account details here]
2. Credit Card: You can pay the outstanding balance via credit card. [Insert website link here]
3. PayPal: You can make a payment via PayPal. [Insert Paypal link here]
4. Check: You can send a check made payable to [Insert company name here]

Please let me know which payment channel is most convenient for you, and I will provide you with the necessary information.

Best regards,
[Your Name]

Email template communicating flexible payment plans

Sometimes customers may have difficulty paying their bills on time. When writing emails for past due invoices, consider offering a payment plan that works for you and the customer. This can help ensure that payments are made on time and can improve your relationship with the customer.

Take a look at this invoice reminder email template, for example.

Template 6

Subject: Payment Plan Options for Invoice [Invoice Number]

Dear [Customer Name],

I hope this email finds you well. I am reaching out in regards to Invoice [Invoice Number], which has not been paid despite its due date of [Due Date]. I understand that paying outstanding debts can be challenging, and I am writing to offer you multiple payment plan options.

At [Company Name], we value your business and are committed to finding a solution that works for both of us. To help you make the amount due more manageable, I would like to offer you the following payment plan options:

1. Monthly Payments: We can set up a payment plan that allows you to make regular monthly payments until the debt is fully paid.

2. Lump Sum Payments: You can pay a lump sum towards the outstanding balance and we can arrange for the remaining balance to be paid in smaller installments.

3. Partial Payments: You can make partial payments towards the outstanding balance until it is fully paid.

Following any of these options would allow you to bring your account up to date while also giving us the peace of mind that comes with receiving payment.

If you are interested in discussing a custom payment plan, please let me know, and I would be happy to set up a time to talk. I am confident that together we can find a solution that works for everyone.

Best Regards,
[Your Name]

Email templates for subsequent reminders

Consistent follow-ups can apply gentle pressure on customers who may have been avoiding payment and can motivate them to take action.

With just one click, you can send canned responses to quickly send reminders to your customers rather than crafting each one from scratch.

Also, reminders provide a clear record of follow-up efforts, which can be useful for documenting the collection process. Here’s a set of 5 reminder templates you can use to send to a customer with pending invoices.

Template 7

Subject: Reminder: Outstanding Invoice

Dear [Customer Name],

We hope this email finds you well. We wanted to remind you that we have an outstanding invoice for the amount of [invoice amount] that is past due. Please let us know if there are any issues or if you need additional information in order to make a payment.

We appreciate your prompt attention to this matter and look forward to receiving your payment soon.
Best regards,

[Your Name]

Template 8

Subject: Second Reminder: Outstanding Invoice

Dear [Customer Name],

This is a second reminder regarding the outstanding invoice for the amount of [invoice amount]. As previously discussed, this invoice is now past due, and we have yet to receive payment.

Please let us know if there are any issues or if you need additional information in order to make the payment as soon as possible. I’ve also attached a copy of the invoice for your convenience.

We appreciate your prompt attention to this matter and look forward to receiving your payment soon.

Best regards,
[Your Name]

Template 9

Subject: Third Reminder: Outstanding Invoice

Dear [Customer Name],

This is the third reminder regarding the outstanding invoice for the amount of [invoice amount]. We have yet to receive payment, despite previous reminders.

We would appreciate your prompt attention to this matter and request that you make the payment as soon as possible.

Please let us know if there are any issues or if you need additional information in order to make the payment.

Best regards,
[Your Name]

Template 10

Subject: Final Reminder: Outstanding Invoice

Dear [Customer Name],

This is the final reminder regarding the outstanding invoice for the amount of [invoice amount]. We have yet to receive payment, and this invoice is now significantly past due.

Kindly remit the payment by the end of the day.

Please let us know if there are any issues or if you need additional information in order to make the payment.

Best regards,
[Your Name]

Template 11

Subject: Payment Overdue: Outstanding Invoice

Dear [Customer Name],

This email serves as notice that the invoice for the amount of [invoice amount] has not been paid for over X days. Despite multiple reminders and offers to re-negotiate the payment terms, we have yet to receive payment.

We will be taking necessary steps to collect the overdue amountand any additional fees incurred as a result of non-payment, including but not limited to late fees, collection fees, and interest.

A negative credit report reflecting on your credit history may be submitted to a credit reporting agency if you fail to clear your outstanding balance.

Please contact us immediately to make arrangements for payment.

Best regards,
[Your Name]

How to Setup Accounts Receivables Collection Templates

Using these payment reminder email templates will help your finance and accounts team collect pending accounts receivable promptly, consistently, and accurately.

The next logical step would be to run your finance operations from a platform that helps you create and manage these canned email responses. This is where Hiver comes in.

Hiver works right inside Gmail. That means you and your Finance teams can get started in minutes with minimal training. It helps collect accounts receivable by providing automation and organization for the billing and payment process.

This includes automatic tracking of account payables and sending reminders to customers who have overdue accounts.

The solution can also provide a centralized platform for customer communication and support, allowing the collections team to respond quickly to inquiries and resolve any issues that may be impacting a customer’s ability to pay.

A platform like Hiver can help scale your team’s efficiency, reduce errors, and ultimately improve the rate of successful collections.