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A payment reminder is a friendly signal to your customer that an outstanding invoice has not yet been paid. For you as a business owner, it’s a key step in your credit management process: you stay professional and maintain control over your cash flow.
A payment reminder email is sent to remind the customer of an overdue invoice. The goal? To encourage payment—without straining the relationship.
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It’s common to send a payment reminder 3 to 5 business days after the invoice due date has passed. This is a friendly reminder of payment due. If the customer still hasn’t paid, follow up with a second reminder. Each step has its own tone and timing.
A first payment reminder message typically includes:
Example:
“Dear [Name], according to our records, invoice [Invoice Number] dated [Date] has not yet been paid. Could you please settle this within 7 days? Thank you!”
A second payment reminder template is used if no payment was received after the first message, typically 5 to 7 days later. The tone is more formal and includes a clear call to action.
Example:
“Dear [Name], despite our earlier reminder, we have not yet received payment for invoice [Invoice Number]. We kindly request that you pay the outstanding amount within 5 business days. If payment is not received, further steps may be taken.”
In the United States, there is no single federal law that regulates the costs you can charge for late payments. Instead, these rules are typically governed by state laws and contractual agreements between businesses.
To legally apply late fees or interest charges, these must be clearly stated in a written agreement. This includes outlining the fee amount or interest rate, when it applies, and any grace period. Without this, enforcing charges can be difficult.
Many states impose usury limits—caps on how much interest you can charge. For example:
There’s no nationwide regulation like the UK’s statutory interest. However, if your actual debt recovery costs exceed your standard admin fee, you may be able to claim additional expenses—provided they’re reasonable and justifiable.
To stay compliant:
By being clear and consistent in your approach, and following your state’s rules, you can use late fees and reminders effectively—without damaging client relationships.
Although these terms are often used interchangeably, there’s a key difference. A payment reminder is a first, friendly payment reminder email that an invoice is unpaid. A final reminder has a firmer tone, usually comes after one or two reminders, and often signals the next steps—like collection costs or legal action.
A good credit management process distinguishes clearly between these stages. That way, your customer knows what to expect and you stay in control.
| Feature | Payment Reminder | Final reminder |
|---|---|---|
| Time of sending | 3–5 days after due date | After 1 or 2 reminders |
| Tone | Friendly and informal | Formal and direct |
| Purpose | Gentle reminder | Demand for payment, warning of steps |
| Legal status | Not mandatory, but common | Legally required (for consumers) |
| Possible consequences | None | Start of collection or legal action |
| Suitable for | First contact after missed due | Final step before escalation |
By making this distinction in your communication, you keep the relationship with your customer professional and the payment process transparent.
Below is an example of a first payment reminder and a second payment reminder.
Dear Sir/Madam,
Our records show that the following invoice has not yet been paid:
[Invoice details]
We kindly request that you transfer the outstanding amount of €… to [Bank Account]. Alternatively, you can use the payment link in the invoice.
If payment is already on the way, please ignore this message.
Kind regards,
[Your Company]
Dear Sir/Madam,
Unfortunately, despite previous reminders, we have not yet received payment for the outstanding invoice. You’ve had sufficient time, and the payment is now officially overdue.
[Invoice details]
You still have 14 days to transfer the total amount of €… to [Bank Account] or pay directly via the payment link in the invoice.
If we don’t receive your payment in time, we will be entitled to claim additional costs. Besides the invoice amount, you’ll owe collection fees and any applicable statutory or contractual interest.
The collection fee will be €… If payment is not received within the 14-day period, we will treat this invoice as a collection case. The 14-day term starts the day after this message is delivered.
We hope to avoid any further steps and kindly ask that you settle the amount on time.
If you’ve already paid, please disregard this reminder.
Kind regards,
[Your Company]
A well-written payment reminder not only increases the likelihood of getting paid on time, it also supports a healthy customer relationship. Follow these tips for a professional and effective approach:
By applying these tips, your friendly payment reminders will come across as thoughtful and professional—just like Payt does it. Prefer not to worry about it? Payt automates the full process, from the first message to smart follow-ups.
With Payt, you no longer have to send payment reminders manually. Our software automates the entire process of invoicing, reminders, and follow-ups. You’ll get paid faster—with less effort. Thanks to clear communication and smart workflows, you stay in control and keep your customers satisfied.
Want to learn more? Download our brochure and see how Payt can support your business.
A payment reminder is friendly and informal, while a formal notice is more serious and may lead to collection fees or legal action.
Typically, you send one or two reminders before moving on to a formal notice or debt collection process.
