Create the Perfect Payment Reminder Letter Format for Businesses

Payment reminder letter format for businesses

hello everybody this is John mark calling from funding gates and today what we're going to cover is payment reminders that actually work and so basically your customers they have a ton of other suppliers and vendors that they need to pay right that they need to prioritize so it's the squeaky wheel that gets the grease right so whichever supplier and vendor has the most disciplined and systematic outreach process right and never drops the ball right and it's consistent is able to climb up the priority list right so basically you know for each customer segment right for several weeks and months every single week you need to essentially apply to touch points one phone call one payment reminder and then you can include other tasks along side of that could be sending a fax sending a snail mail sending a LinkedIn message visiting in person whatever it is but the bare minimum is at least one phone call and one payment reminder a week okay so today what we're going to go through are a couple of payment reminder examples and kind of the timeframe on when to send them out so one thing when a reminder is a reminder just before the invoice is you typically like two to three days before the due date so if you look at the format of the payment reminder right first of all make it look really nice really professional right and add your logo at the top okay so they immediately knows it comes from you all right clearly lay out the table of the invoices that are outstanding by invoice ID due date issue date and remaining balance of the invoice and you can see also that color code by with red the invoices that are passed you right so it's clearly visible right and then also at the end add your contact information phone down most importantly so that they know how to get in touch with you right away one to ten days after the due date of the invoice send a swing.the reminder in a friendly tone you know thank them again for the business and assume that they're actually going to pay right it's just that you want to check in and just wanted to confirm right to remind us it's like a friendly nudge about the payment 10 to 30 days after the due date of the invoice you know this is a sample firm reminder that you can send you know during that time period multiple times you know a week and basically you know add some exclamation marks right capitalized certain words color code certain words in red right and ask for a status and what the plan is to settle this invoice account right 30 to 60 days after the due date you can start sending kind of final reminders right basically letting them know that you know if you don't get paid that you're willing to send an account to collections right or that you know you'll report their late payment to the credit bureaus which affects their credit score or that you're gonna file a 1099 C with the IRS which essentially is a bad debt loss right so these are just a couple of like examples then you can include in the final reminder right for accounts that are like really late right like a few months late at this point and then like 60 days past you or 90 or 120 days past you you send out a final payment or minor and it's really not a reminder anymore it's just kind of like like a statement right clearly stating what you're going to do what will happen next stay really professional like really cautious as well and you know just tell them that you're gonna report the late payment you know as a 1099 C to the IRS right and you know we've seen this final human reminder generate really good results really good engagement also always track the open rates the click rates on the invoices right if including invoice links and your reminders make sure you know who clicks and who opens your payment reminders and who is replying that way your team can prioritize those customers that are the most engaged right versus the customers that are like never answering never opening up your reminders right you want to go after the low-hanging fruit first because that way you can see an immediate impact on your cash flows that's it for today hope you enjoyed this series and yeah looking forward to sharing more content soon