Late payments are a common issue for many businesses. Whether you’re dealing with small clients or large accounts, waiting on money you’ve already earned can affect how you operate. It puts pressure on your cash flow, delays payroll or supplier payments, and creates unnecessary admin work. That’s why staying on top of the accounts receivables process is important for businesses of all sizes.
Why Late Payments Happen
There are many reasons invoices go unpaid. Sometimes it’s an honest mistake, where the client forgets. In other cases, they may be waiting on payments of their own. And occasionally, clients delay on purpose, hoping to stretch their own cash flow. No matter the reason, having a clear and reliable system in place helps make sure those payments are followed up on professionally and consistently.
The goal is to get paid without damaging the relationship. That means being firm, polite, and organised.
Sending the First Payment Reminder
When an invoice passes its due date, the first step is to send a payment reminder email. This is often all it takes. A short and professional message that includes the invoice number, amount due, due date, and banking details is usually enough to prompt payment.
It’s best not to wait too long before sending a reminder. A message within a few days of the missed deadline keeps the account fresh in the client’s mind. Delaying your follow-up can make the process longer and more difficult.
If you’re not sure what to say, using a proper payment reminder message can help keep the tone respectful while still being direct.
Following Up When There’s No Response
If a reminder doesn’t get a reply, the next step is a payment follow up email. This should be slightly firmer but still polite. Remind the client of the original due date and that the invoice is now overdue.
You can also ask if there are any issues holding up the payment. Sometimes there’s a dispute or an internal approval delay you’re unaware of. Giving them a chance to explain makes it easier to find a solution.
To save time, many businesses use a payment follow up email sample to create consistent messages. That way, you don’t have to start from scratch each time.
When to Send a Formal Request
After two or more reminders with no reply, you may need to send a payment request letter. This is more formal than an email and shows that you’re taking the matter seriously.
It’s still not aggressive. But it should make it clear that the debt is now being treated as urgent. Include all previous references to the invoice, and mention any previous follow-up attempts.
It helps to attach the original outstanding invoice again, in case the client never saw it.
The Role of Payment Request Emails
Not every situation requires a full letter. Sometimes, a simple payment request email is enough. These messages should stick to the facts: what the invoice is for, when it was due, and how payment can be made.
Try not to add emotional or personal comments, no matter how late the payment is. Keeping it neutral helps avoid conflict and makes it easier to get a reply.
If needed, you can include a copy of your terms or the signed agreement, to remind the client what they agreed to.
What to Do With Ongoing Delays
When someone still hasn’t paid after several reminders, it’s time to look at how you manage outstanding debtors. These clients often take up the most time and energy. They may need more regular follow-ups or even special conditions like deposits or shorter payment terms.
The longer a debtor goes unpaid, the less chance you have of recovering the full amount. That’s why following a set process helps. Use a fixed timeline for reminders and escalation. For example:
- Day 3: Send a friendly reminder
- Day 7: Send a payment follow-up
- Day 14: Send a formal letter
- Day 21+: Consider further action
Using a written payment reminder letter as part of your system helps make each stage clear and documented.
Automating Your Accounts Receivable
Manually chasing payments is not easy, especially when your team is busy. This is where accounts receivable automation makes a big difference. Automating reminders, tracking due dates, and updating payment statuses can save hours of admin work each week.
Automation lets your system send the first reminder the moment an invoice becomes overdue. If no action is taken, it sends the next reminder a few days later—without anyone needing to click a button. This keeps your team free to focus on more important work.
When the business grows, automation becomes essential for managing accounts receivable at scale. With dozens or even hundreds of clients, nothing can be left to chance.
Using Accounts Receivable Software
One of the best ways to stay organised is to use proper accounts receivable software. This software stores your client records, payment history, invoice statuses, and follow-up activity. Everything is in one place.
It also helps you report on overdue amounts and track patterns. For example, you might find that a certain client is always late, or that a certain team delays invoices from being sent. Knowing these trends helps you plan better and reduce future risk.
Some businesses also use collection software to handle more difficult cases. These tools help log all communication, send bulk reminders, and even link to legal or external recovery options if needed.
Keeping the Accounts Receivables Process Simple
The collection of accounts receivable is not just about chasing money. It’s about setting up a clear process from the start. That includes having proper terms, sending invoices on time, and following up in a consistent way.
This can be made easier with a clear payment reminder template. You can create a few versions for different situations—first reminder, second reminder, and final notice—and reuse them across clients.
If your team is also handling outgoing payments, it’s useful to look into accounts payable automation software to stay balanced. This tool helps track what you owe and when to pay it, making your full cash flow more predictable.