When it comes to managing accounts receivable, asking for money is never easy. On one hand, you appreciate your customers and don’t want them to feel like all you care about is collecting their payment. On the other hand, you recognize that late payments have an impact on operations and cash flow – especially if you run a small business.
So how do you balance between the anxiety of asking for payment on invoices and maintaining a relationship with your customers that’s about more than just money? It’s all about communications and standardized processes.
Customer Communications via Notices and Letters
Consistent communication with your customers will often be the difference between getting an invoice paid in a timely manner or having that amount go overdue ... and in some cases, become bad debt.
Whether you choose to call, send an email, or mail a formal letter, communicating with your customers at regular intervals is extremely effective when appropriately worded and sent at the right time.
Benefits of Using a Template
Standardized letters and email templates are a vital aspect of an automated and effective collections strategy. With one simple action, you can populate an email with specific details for a particular client and transaction, saving your company time and increasing productivity. In addition, using templates also allows you to standardize your approach so you can test and refine different variations of emails and letters to determine which version is most effective.Related:
How to Write the First Collection Letter
How to Write the First Collection Call Script
Email Reminder Sample: 5-7 days Before Due date
Sending invoice reminder emails before the due date is a good business practice and nice courtesy to your customers. Occasionally, invoices get lost in the mail or get deleted accidentally from an email inbox. Since this is just a reminder and the invoice isn’t actually past-due, it’s important to keep the tone friendly, informative and professional.
We hope all items were received and you’re happy with your purchase. This is a friendly reminder that the due date for invoice number <Invoice_Num>, <Due_Date>, is just around the corner. The amount still due on this invoice is $<Invoice_Total>. A copy of the invoice is included with this communication.
If you’ve already sent payment, we thank you very much. If not, we accept payment via check, ACH, wire transfer, or credit card.
If there are problems with the invoice or with the service or product you received, please contact <AR_Rep_Name> at <AR_Rep_Email> or <AR_Rep_Phone>. They will work with you to resolve any issues.
Thank you for being a valued customer. We look forward to our continued business relationship.
Email Reminder On Due Date
Again, this is more of a courtesy and client service offering, not a past-due or collections letter so keep it light and friendly, but just a tad bit more direct. This communication keeps your invoice in the client’s mind and may prompt payment, or at least an acknowledgment.
We’d like to remind you that the total amount of $<Invoice_Total> for invoice number <Invoice_Num> is due today, <Due_Date>. A copy of the invoice is included with this communication.
If you’ve already sent payment, we thank you very much. If not, we accept payment via check, ACH, wire transfer, or credit card. Please contact <AR_Rep_Name> at <AR_Rep_Email> or <AR_Rep_Phone> to provide us with the payment information so we may properly notate your account. If any issues prevent this payment, please contact us. We’d like to work with you to resolve any problems.
Thank you for being a valued customer. We appreciate your time and attention.
💡 TIP: all written communication sent throughout the accounts receivable and collections process – emails and regular postage – should include copies of the invoice(s) in question.
Want more tips, templates and guidance like this?
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