Accounts Receivable Email Templates and Examples

How many times do you communicate with customers regarding past due invoices? This is an important metric to understand because studies show that companies who spend more time communicating with customers have, on average, have much healthier receivables, lower DSO, and less bad-debt. Email is a simple way to get in front of your customers regularly and provide them with all of the information they need to submit payment, but the timing of those emails and the language used will impact if and when they pay you. Email, like all tools, when not used correctly will not work.  Below are a few accounts receivable email templates and a brief explanation of the different types of emails you should be sending to customers.

Reminder Emails

You should remind customers to pay you a few days before the invoice is due and that there is still a balance due on their account. It’s a good rule of thumb to send the reminder email 3-5 days before the invoice is due. Reminder emails can take a lot of time if you don’t have the right system in place to automate this process.

Example
Attached are invoices that are due in the next <Number> of days that have an outstanding balance of <Amount>. Please notify us if there are any problems with the invoices in question and let us know when payment will be processed.

You can also CLICK HERE to pay your account with a credit card in our secured, self-service online customer portal. You can make a note on invoices in the portal should you have an issue that requires our attention.

Kindly disregard this email if payment has already been processed. We realize you have many choices and thank you for your business and look forward to serving your future business needs.

Past Due Emails

This email notification should be sent the day the invoice is past due, or within a few days of the invoice due date. It can be friendly in tone and, like the reminder email, should include a copy of the invoice with the information the customer will need to remedy the situation

Example
Attached are invoices that are due today that have an outstanding balance. Please notify us if there are any problems with the invoices in question and let us know when payment will be processed.

You can CLICK HERE to pay your account with a credit card in our secured, self-service online customer portal. You can also make a note on invoices in the portal, should you have an issue that requires our attention.

Kindly disregard this email if payment has already been processed. We will contact you in a few days if payment has not been received.

We realize you have many choices and thank you for your business and look forward to serving your future business needs.

Collections Emails

As the invoice ages you will need to adjust the tone of your communications with customers. Invoices that have aged beyond two weeks are becoming a serious risk, and reduce the chance of you collecting on the entire invoice amount. A collections email should be sent reminding the customer of the past due balance with a more serious tone than previous communications. The customer needs to understand that this is becoming a serious issue for your organization and that failure to remedy the situation will have negative consequences. Still, your communication does not need to be hostile and can still reinforce your commitment to working with them to resolve the issue.

Example
Attached are invoices that are several weeks past due. Please contact <Collector Name> at <Phone Number> to discuss this issue.

You can also CLICK HERE to pay your account with a credit card in our secured, self-service online customer portal.

We will contact you in a few days if we do not receive your phone call and payment has not been received.

We realize you have many choices and thank you for your business and look forward to serving your future business needs.

If these emails did not spur action from your customer, it may be time to get more people involved such as the sales rep that works with the customer or, as the problem continues, third party collections. To avoid getting to that point, consider this:

  • You will notice the above templates make mention of an online payment option; this allows customers to pay online 24/7 which makes the entire process fast and easy for them. The more you can simplify the payment process, the faster you will get paid. Learn more about online payment with accounts receivable management software, here.
  • As a general rule, each past due invoice should be emailed and called a minimum of 9-10 times through a standard collections cycle before the account is turned over to third party collections and before you pursue legal action. But emailing or calling on each and every invoice 9-10 times is time consuming, not to mention exhausting. Accounts receivable management software with email automation allows you to, among other things, automatically send emails to customers with copies of invoices and predefined accounts receivable email templates and letters for each phase of the collection process.
  • Accounts receivable management software  is designed to act as a virtual accounts receivable clerk and credit manager to help you identify what actions need to be taken, when, and how, with built-in templates, automated email communications, and other tools to help you get paid faster. Learn more here

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