Asking a family or friend to pay you back can be a hassle and cause unnecessary stress. That is even more the case if you're approaching a stranger.
However, in business, asking customers to pay is a necessity. After all, the company can only keep going if the funds needed to run it come to you. This thought, however, doesn't make the experience any easier.
Payment reminders can be uncomfortable and also inconvenient when you're dealing with a large number of people. However, modern tools make it possible to lighten that burden. Join us as we show you how to write a payment reminder notice and send them using modern tools and technology.
What is a Payment Reminder?
Payment reminders are notices of outstanding dues that can help you collect dues from customers. Many companies who regularly bill customers make use of payment reminders.
Since this article will discuss how to write a payment reminder message, we'll first have to understand what it is and how it can help your business.
Definition of Payment Reminder
A payment reminder is any document, message, email, or notification informing a person about their dues, bills, or credit. It serves as a literal reminder that they owe a certain amount to someone.
Payment reminders can be sent in different forms and timings. The following are specific periods when payment reminders are forwarded to clients, customers, or debtors:
Advanced Payment Reminder
Typically sent a short period before the due date, for example, about a week. It serves as a notice that there are incoming dues to be paid.
Due Date Reminder
The payment reminder is sent on the day of the due date itself. Its purpose is to ensure the receiver knows the due date on the day to avoid missing it.
Late Payment Reminder
A follow-up reminder is sent about a week or two after the due date when the receiver fails to deliver on their promises or does not pay the bill. The tone may vary from a casual reminder to a final warning to pay their dues.
There are many ways to send a payment reminder to a customer. There are traditional businesses that prefer sending a letter or document. Those who are more technologically capable prefer to use apps or send an email.
For this article, we'll talk about a method somewhere in between - an SMS or a text message.
Who Sends Out Payment Reminders?
Businesses in different sectors and industries send payment reminders. Most of them who do so typically bill customers regularly or are involved with periodic payments such as insurance and financial institutions.
These are some examples of industries of businesses that generally send payment reminders to customers or clients:
- Real estate
- Phone companies
- Internet and cable operators
- Lending institutions
Payment reminders can be uncommon in some industries like retail or food service, where bills are almost always paid immediately and whose amounts are not that material to warrant using payment reminders regularly.
However, if payment reminders apply to and benefit your business, you can try them out.
Why Bother Sending Payment Reminders?
Payment reminders can take extra time and resources, so why do businesses bother? Here are some reasons why businesses expand the effort to send payment reminders:
It Increases Timely Payments
There are many reasons why a bill could be ignored and left unpaid. It could be that the customer needs to be financially ready to make the payment. Maybe they are physically not able to. They could have forgotten. Or perhaps they need to find the bill and mistook the due date for a later period.
Whatever the reason, a payment reminder is an excellent way to notify a customer about their obligations and reiterate crucial information in the original bill.
It Reduces Payment Schedule Mistakes
Many customers tend to pay with a debit or credit card. There are many cases when customers need help updating information on their cards or are having difficulties delivering. A payment reminder gives them an advance notice to prepare for the dues and resolve any possible issues before the due date. Also, they can request a change in payment schedule if their circumstances warrant it.
It Provides a Better Customer Experience
Even simple gestures like greetings can help us have a good impression of someone. The same goes for business. Small efforts like notifications, news updates, and payment reminders make things easier for the customer. In turn, it gives them a good image of your company. A professional attitude with good customer service can boost your brand's image, credibility, and reliability to the public.
It Helps Earn Higher Revenue
The more payments are collected promptly, the higher your revenue can be. Earning more profits not only means saving up a more significant income but also allows you to gather more tangible and liquid resources that you can use for operations or even improvements in your business.
How to Write a Payment Reminder
Even a simple reminder requires a particular format and a certain level of decorum. You would want to remind a customer about their dues with moral urgency, but you also want to avoid being rude or inconsiderate. Here are some essential tips on how to write a payment reminder.
These are the essential writing and formatting tips you need to remember when you write any payment reminder:
Keep it Brief and Professional
The message doesn't have to be lengthy - what's important is to get the point across. Be empathetic towards the customer, especially on the first reminder. There is a chance that missing the payment was not intentional.
Avoid demanding, imperative, or pushy statements. Instead, inform them about their due date and the amount involved.
Avoid using Trigger Words
If you're sending via email or other online methods, avoid anything that can get your message to be filtered as spam.
Make sure your formatting is neat and professional. Avoid using all caps, as this can get your message tagged as spam.
At the same time, avoid harmful or threatening words, no matter how frustrating a particular client can be. Not only do you want to prevent a spam trigger, but you also want to avoid possible lawsuits.
Attach a Copy of the Bill or Invoice
There's also a chance that the client has lost or deleted their copy. To be on the safe side, it's better to provide a copy of their invoice or bill for every reminder sent. It also serves as a reference so they don't have to look for their copy whenever they get a reminder.
Include all the Necessary Details
When sending a payment reminder message, ensure critical information is correctly specified on the notice. That way, it's clear who the sender and receiver are, as well as the nature of the obligation.
So what relevant details should be included in a payment reminder?
First, the sender and recipient should be apparent to identify your message. Then, directly state the amount owed and the due date for the payment. Attaching a transaction, reference number, or even a copy of the invoice would be ideal. Lastly, make clear the receiver's various options when it comes to paying.
Do not rely on ‘Fine Print’
Avoid using open-ended statements that rely on the receiver's interpretation. The objective is to be as straightforward as possible, especially regarding deadlines and amounts.
Offer Various Payment Options, if possible
Sometimes a single mode of payment can be challenging for a particular customer. They could be having logistical or technical issues. Offering different options increases their chances of making the payment on time. Offer different ways like cash, credit card, debit card, and online banking.
Examples of Payment Reminders
Let's take a look at various payment reminder message templates and see how you can use this as a reference on how to write a payment reminder message:
Advanced Payment Reminders
"Hi, your payment for (Invoice/Transaction No.) is due next week. We've attached a copy of your invoice for your reference. Have a great day!"
"Reminder - your payment for (Invoice/Transaction No.) with ABC Inc. is due soon. Let us know if you need any assistance. Thank you!'
"Hi (Client)! We're sending you this friendly reminder that (Invoice/Transaction No.), sent last (Date), is due the following week.
You may visit (Link) to review or pay your invoice.
Have a nice day."
The following SMS templates are short and sweet examples of a payment reminder before the due date. They detail the essential parts of the reminder without inflicting unnecessary pressure on the receiver. Advanced payment reminders are brief and helpful, to nudge the customer regarding an upcoming payment gently.
Due Date Reminders
"Hi there, we noticed that your payment for (Invoice/Transaction No.) still needs to be made. Please let us know if you need any assistance."
"Good day, (Client). Remember that your payment for (Invoice/Transaction No.) is due today. You can check your invoice at (Link) and pay through (Payment Methods). Do contact us for any questions."
You can try both examples of polite payment reminder emails or SMS. It serves as a short message for a payment request that is professional but still approachable. Again, you want to remind a customer rather than nag them for not paying their dues.
Late Payment Reminder Messages
"Hi, (Client)! Your payment amounting to (Amount) for (Invoice/Transaction No.) is overdue by a week. Kindly review the invoice at (Link) and submit your payment accordingly."
This example of a payment reminder message is a reminder that emphasizes the delay of the customer. It uses a more direct and proactive tone while maintaining a professional note.
"Good day, (Client). We noticed your payment for (Invoice/Transaction No.) was due last (Date). Kindly make your payment by (Date) to avoid late fees as per our payment policy. You can review the details at (Link). Thank you!"
This template applies to lengthier delays in payment and reminds customers about possible fees or penalties associated with a default or delay in payment.
These are typical examples of polite but professional reminders you can use for SMS or even a brief, polite payment reminder email. Aside from these reminders, you can also send messages thanking customers and confirming their timely payments. Some businesses use SMS to inform customers about incentives for timely payments.
How Can I Send Payment Reminders Remotely?
There are various methods you can use to send payment reminders remotely. Email, SMS, and messages via other web-based platforms are examples of this.
You can do so manually or use a broadcast feature to send an SMS to a group. You can program automated messages to send to applicable customers using an app, virtual number service, or CRM. Prepare templates in advance to help you in the process.
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Frequently Asked Questions
- What are the legal requirements for payment reminders?
- It is not required by law to send reminders in certain instances. Each business makes its own decisions.
- How often should I send a payment reminder?
- Send a payment reminder two to three days prior to the invoice's due date.
- What are the other ways I can send a payment reminder?
- In the email subject line, mention the invoice number and due date.
- Attach the initial invoice once more.
- Keep your writing succinct, professional, and welcoming.
Sending a payment reminder can be an uncomfortable and arduous task, but it is necessary for your business. It may seem unpleasant to imagine a customer's reaction to receiving one but using the proper format, and courtesy can make the experience more accessible.
Modern technology lets you forward reminders and messages to people with only a few taps or clicks. With these tools, you can save time and resources by sending payment reminders in one go.
You can do so much more with an effective tool to help you. Apps like LimePhone serve to add convenience and confidence to business owners. Visit limephone.io for a free trial.