As soon as you have sold your product or service, it’s time to send an invoice to your customer. But how do you write a good and effective invoice letter?
Most payment delays are caused by administrative issues, such as incorrect or unclear invoicing. Good communication with your customer helps to receive payments faster and maintain cash flow. A complete and clear invoice letter is the first step in this process. On this wiki page, we provide tips for writing a professional invoice letter.
Get paid faster and maintain your cash flow with these tips!
Let’s start with the definition of an invoice letter. An invoice letter is sent along with an invoice to explain the payment details and ask the debtor to pay the invoice within a certain payment term.
To increase the chance of early payment, it is important to create a clear and professional letter. But how do you do that? With these tips, you reduce the chance of ending up with overdue and unpaid invoices.
1. Create an invoice template
Open a blank (Word or Pages) document and create a template for your invoice letter that suits your company. Use the tone of voice, company name, and company logo common within your company.
It is important to be professional and friendly to ensure that your customers pay promptly.
2. Enter your company details
Start by entering your company name and full address in the top left corner. The standard address format in Belgium is:
Name
Company Name
Postal Address
Postal Code + City
Country
Enter the date below this information.
3. Enter the recipient’s information
It is important to mention the specific name to whom the invoice should be sent. As an entrepreneur, it exudes professionalism if you know to whom the payment is going or to whom the invoice or invoice reminder should be addressed.
Recipient Name
Title
Company Name
Address
4. Start the letter with an introduction
Begin the letter with a salutation using the same name as in the above address. You can also add a personal title here, such as Mr., Mrs., Drs, or Dr.
Then write a friendly opening sentence. An example could be:
> Dear Mr. Kamstra,
>
> I hope you are doing well.
5. Get to the point
After the introduction, write the main body of the invoice letter. Get to the point and be as clear and concise as possible. This way, the recipient immediately sees what is expected of him or her.
If you don’t, you risk the recipient not having the time to read the invoice letter and doing so at another time. This also causes a delay in payment.
So if you want to increase the chance of faster payment, be clear and concise! An example:
Attached you will find [invoice number] for [project name]
Payment is due on September 10, 2020. If paid within 14 days, you will receive a 5 percent discount.
For questions about the invoice, you can contact [name] via [contact details].
It was a pleasure working with you.
6. Write the closing
Write a friendly closing line and add a comma at the end of this line. Then add your signature and name. An example could be:
Thank you in advance,
[Signature]
[Your Name]
Don’t forget to mention the attachments at the end of the letter. This way, you encourage the recipient to view these attachments and take action. An example of this is:
Attachment: Invoice [number]
Communication is key
By consistently bringing invoices to your customer’s attention and keeping the communication going, your customer’s payment behavior improves. However, manually sending payment reminders is a time-consuming process.
This is a thing of the past with Payt’s software.
Payt automatically starts an invoice reminder process while you retain full control. From the first invoice to the last reminder through a good invoice letter for overdue invoices. This saves you up to 80 percent of your time and keeps control over how your invoice (letter) looks and when a customer should be reminded. Want to know more about an invoice reminder? Read more about what an invoice reminder is.
What makes Payt unique is the communication platform in the software. Payt keeps the communication with your customer going, which results in better payment behavior.
You can communicate with your customer per invoice and respond appropriately if he or she has a question or comment about this specific invoice.
