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Seamlessly Manage your Finance Ops with Hiver

11 Email Templates for Collecting Accounts Receivable from Customers

May 20, 2024
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8 min read
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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?

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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.

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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.

An account receivable 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 your Inbox

To create invoices that are professional and reflect your brand, using 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:

Template 2

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.

blog linking to 10 writing mistakes that make your emails ineffective

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

Template 3:

Template 4:

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

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.

blog link to 17 Email Phrases to Help You Get the Desired Response

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

Template 6

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

Template 8

Template 9

Template 10

Template 11

You may also like:7 Best Renewal Reminder Templates for Faster Payments

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 your inbox (Gmail or Outlook). 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.

Shobhana has been recognized as a 'Top Customer Support Voice' by LinkedIn. Her expertise lies in creating well-researched and actionable content for Customer Experience (CX) professionals. As an active member of popular CX communities such as CX Accelerator and Support Driven, she helps professionals evaluate tools for their support team and keeps a keen eye on emerging industry trends.

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