Sample overdue payment reminder letters – first step

Prior to sending a personalised collection letter to your late paying customer, you should send two
end of month statements. Sending a letter without giving your customer a chance to pay based on these impersonal statements could give offence. Even though you are owed the money it is always best to keep good business relationships in case there has been a misunderstanding by them, or even an error on your part (payment not recorded for instance).

The first statement should say: Overdue Please Pay.

The second should say: Second application – Account overdue – please pay or

Immediate attention is requested

If no payment follows, then one of the following collection letters should be sent.

Formal letters requesting overdue payments are called collection letters.

First collection letter – Sample 1

To a regular paying customer

[Your business name and address]

[Customer’s business name and address]

[Date]

Re: Account no: 123456

Dear (complete name)

As you are normally a prompt payer on your account we are surprised that you have not yet settled the above invoice which is currently [one month] overdue.

In case you have not received the statement of account which was sent on [date] we have enclosed a copy with this letter. The amount due is [amount] and we would be grateful if you would pay it at your earliest convenience.

Yours Sincerely,

[Your name]
[Your position/title]
[Business Name]

First collection letter – Sample 2

To a new customer

[Your business name and address]

[Customer’s business name and address]

[Date]

Re: Account no: 678910

Dear (complete name)

It is with regret that we must remind you that your account is overdue and we are awaiting payment. In case you did not receive the statements we sent recently, a copy is enclosed, it shows an outstanding balance of [amount].

As a new customer, you received favourable prices for your purchases based on the agreement that you would pay promptly.

This overdue payment may be the result of an oversight and so we would be grateful if you would pay this balance within the next few days.

Please feel free to contact me if you have any queries.

Yours Sincerely,

[Your name]
[Your position/title]
[Business Name]

First collection letter – Sample 3

[Your business name and address]

[Customer’s business name and address]

[Date]

Re: Account no: 678910

Dear (complete name)

Our invoice no: [number], dated [date] which refers to your monthly payment of (amount) has not been paid. This invoice should have been paid on the [due date] and at the very latest by the [latest date].

As yet we have not received this payment. If you have paid this invoice then please ignore this letter. If there is a problem with regards to this or future payments please telephone our customer services department as soon as possible to discuss the matter. Penalties and accrued interest for missed or late payments will be detailed on your next statement.Please contact me at your convenience by letter or telephone call if the matter needs further discussion.

Yours sincerely

[Creditor name]

Second collection letter – step 2