The 5 Best Collections Email Templates

Anyone who’s worked in accounts receivables knows how valuable a good collections email template can be. Accounts receivable collections rely on clear communication with customers, both in delivering accurate invoices on time and ensuring those invoices get paid.

An A/R collections email template supports quick and efficient communication between you and your clients. It saves your team significant time during your dunning processes, freeing you from needing to build each email from scratch. (It also eases the burden of invoice collections somewhat). 

When you have a structured way of communicating with delinquent clients, you can test various template strategies and determine which are most successful at moving the needle. We suggest trying out each of these payment collection emails on your own clients and see which offer the best results.

Types of Collections Emails

Here are a few different accounts receivable email examples that vary according to the particular circumstances. 

1. Proactive reminder emails

Sending a dunning email before the invoice is due helps to open the channels of communication between you and your customer, especially if you do this while providing clear information about the invoice, including the invoice date, due date, payment details, account information and any other outstanding invoices.  

Example #1

Subject: Payment Reminder: [Invoice Number} Due on [Due Date]

Hi [Client’s First Name],

I hope all is well. I wanted to give you a friendly reminder that payment for [Invoice Number ] in the amount of [Invoice Amount] is due on [Due Date] 

I wanted to take a moment to confirm the payment terms and make sure that everything is clear. 

If you have any questions or concerns about these invoices, please don’t hesitate to ask us at [Your contact information] and we’ll be happy to assist you. 

Attached is your invoice along with your W9 (if in the US) for your convenience. 

Thank you for your attention to this matter as we look forward to our partnership.  

Regards,

[Sender’s Name]

2. Overdue invoice email (first notice) 

If you’ve sent a reminder email and the client still hasn’t moved forward with payment, it’s time for a dunning email. At this point, you’ve given the client multiple chances to discuss payment problems. A firmer, strict tone is fair game. Clear communication is still essential, which is why the email is asking to confirm the customer’s email and phone number. 

Be sure to outline the agreed-upon payment terms in your collections email template and, if applicable, include a warning about impending service changes for delinquent accounts. 

Example #2

Subject: Payment Reminder: Invoice is Now 14 Days Overdue 

Hello [Client’s First Name],

I am writing to remind you that your payment for invoice [Invoice Number ] was due [Due Date] and is now 14 days overdue.

We understand that oversights can happen and we would like to assist you in any way we can to resolve this matter. If there are any other issues or concerns regarding this invoice, please do not hesitate to reach out to us immediately. 

To ensure that we have the correct contact details for you, please confirm the best email and phone number to reach you. We want to make sure that all our future communication regarding this matter will reach you promptly.  

To make the payment, please refer to the payment details below: 

Amount Due: [Due amount]

Payment Due Date:  [Due date]

Thank you for your prompt attention to this matter. We look forward to hearing from you soon. 

Regards,

[Sender’s Name]

3. Overdue invoice email (second notice) 

At a certain point in time, often after 30 days, a customer is given a “final notice” before a company turns to a collections agency or takes legal action. In this email you must clearly state that the invoice is overdue and that your organization will take further action if payment is not received soon. It is also a good time to offer the customer a last chance for payment, such as a specific payment plan or extension of the deadline. Some companies also try to reach the customer by phone at this point as well to pursue collections.

Example #3

Subject: Payment Reminder: Invoice is Now 30 Days Overdue 

Hello [Client’s First Name],

We regret to inform you that your payment for the invoice dated [Invoice Date] is now 30 days overdue. Despite our previous attempts to  contact you regarding this matter, we have yet to receive any payment from you. 

We understand that unexpected circumstances can arise, so we want to provide you with some last-chance opportunities to resolve this matter before further action is taken. We have several payment options available to you, including:

• Paying the full amount via [Payment Method]
• Setting up a payment plan to make multiple payments over time
• Requesting an extension on the payment deadline, subject to approval 

Please note that if payment is not received soon, we may be forced to take further action which may include legal proceedings or engaging a collections agency. 

We value our business relationship with you and hope to resolve this matter as soon as possible. If you have any other questions or concerns, please do not hesitate to contact us. 

Regards,

[Sender’s Name]

4. Final Collection Letter 

After sending several notices about overdue invoices, it’s time to both internally and external escalate the dunning process and notify the customer that the consequence of failing to pay is now legal action. You should now escalate this collections email both internally and externally. Internally to account managers, customer success managers, heads of A/R, or any other role within your organization so that they are also aware of the issue. External escalation should include an outside contact from the customer’s company, such as their head of Accounts Payable. 

These escalations communicate the seriousness of the matter to both your company and the customer. You may also attempt to call the customer again, but remember that even if the customer fails to pay it is critical to maintain a good relationship. You want to continue to effectively communicate with them to minimize any similar issues arising in the future. 

Example #4

Subject: Final Escalation Notice – Payment Overdue for [Invoice Number]

Dear [Customer Name]

I am writing to inform you that payment for the invoice [Invoice Number] has yet to be received. The invoice was due on [due date] and has been marked as overdue for [# days].  

Please be advised that continued non-payment may result in legal action, collections, and negative impact on your credit score. We strongly encourage you to resolve this issue as soon as possible to avoid any additional consequences. 

Here are a few of the payment options available to you: 

• Online payment via our website [website link]
• Bank transfer to the following details [account information]
• Payment by check made payable to [company name] and sent to [company address]. 

If you have any additional concerns regarding this matter, please do not hesitate to contact us. We value your business and would like to work with you to resolve this issue. Thank you for your attention to this matter. 

Best regards, 

[Your Name]

[Your Company]

5. Bonus Template: A Humorous Dunning Email (with Chat GPT)  

Here’s a bonus template for those of you who are fans of generative AI. A/R teams can use Chat GPT to scale the writing of the dunning emails, from giving different variations of subject lines for an overdue invoice to prompting it to write an email reminder and subject line with a humorous tone and text. 

Example #5

Subject: You Don’t Want to Be A “Debtor” of the Invoice [Invoice Number} Club, Do You? 

Dear [Customer Name]

Greetings from the Invoice [Invoice Number] Club! No, we’re not a secret society (or are we?) but we do have one thing that’s in common – a payment that’s overdue. 

Now, we know you’re probably busy living your best life, but this little voice needs some love too. So, let’s make a plan to get it paid up and out of our hair. 

You can make a payment online or give us a call at [Contact Information] to chat about it. We’re always up for a good conversation, even if it’s about money. 

 Thanks for taking care of this and we look forward to seeing you around the club more often… in a good way of course!  

Best regards, 

[Your Name]

[Your Company]

How Gaviti Automates the Dunning Process 

These templates are a good way to begin streamlining your A/R processes, but they’re only the beginning. Gavit’s invoice-to-cash A/R management and automation platform integrated directly with any ERP – and multiple ERPs – to create dunning workflows that deliver the right emails to the right clients at the right time. 

With Gaviti, you can automate dunning workflows and escalations both internally and externally, creating robust workflow triggers set at specific timed intervals, such as a specific number of days before or after an invoice is due. Its automated email platform delivers unlimited workflows segmented according to different criteria such as roles, geography, customer risk, industry, etc. In addition, the platform streamlines the entire A/R process, including important elements such as credit monitoring, cash application and disputes and deductions to improve your cash flow, strengthen your customer relationships, and resolve disputes as quickly as possible. 

Want to learn more about how you can automate the dunning process with Gaviti? Speak to a Specialist! 

Frequently Asked Questions about Collection Emails:

Even if you have great templates, it is still common to have questions about collections emails. Here are some answers to common questions to help you craft effective collection emails for past due invoices and invoices that are not yet past due. These tips will guide you toward better results.

1. How can I track the success of collection emails?

It is important to monitor success based on objective criteria. Here are some KPIs that are commonly used in dunning and other mass emails to help measure success at different stages. 

• Open Rates: Ensure your subject lines are compelling enough to prompt recipients to open the email.
• Click-Through Rates (CTR): Include links to payment portals or additional resources, and track how often recipients click on them.
• Response Rates: Measure how many clients respond directly to your emails.
• Recovery Rates: Monitor how many overdue payments are settled/payments made as a result of the emails.

Using tools like email analytics software or an accounts receivable platform, you can analyze these metrics to optimize your approach and improve outcomes.

2. Can debt collection emails help recover overdue payments?

Absolutely! Debt collection emails are one of the most effective tools for recovering overdue payments. When written professionally and with a clear call to action, they serve as a polite yet firm reminder to clients of their outstanding obligations. 

3. What is the best format for invoice collection emails?

The invoice collection emails include the following elements:

• Subject Line: Be concise and direct, e.g., “Reminder: Invoice #12345 is Overdue.”
• Salutation: Personalize the greeting, addressing the recipient by name.
• Invoice Details: Clearly outline the invoice number, original due date, and amount owed.
• Payment Instructions: Include a link or detailed instructions on how to make the payment.
• Call to Action: Make it clear and encourage prompt payment, such as “Please settle this invoice within 5 business days.”
• Closing: Offer assistance and thank the client for their attention to the matter.
  This format ensures clarity and makes it easy for the recipient to act.

4. How do I write a collection email for past-due invoices?

Writing an effective collection email for past-due invoices involves these steps:

1. Start with a Polite Reminder: Greet the client and acknowledge their previous business with you.
2. State the Overdue Invoice Clearly: Include specifics like the invoice number, due date, and outstanding amount.
3. Highlight the available Payment Methods: Make it simple for them to pay by providing links to online payment portals or instructions for other payment options.
4. Set a Deadline: Politely specify a timeframe for payment, such as “Please make payment by [specific date].”
5. Maintain a Professional Tone: Be respectful and avoid aggressive language to preserve the client relationship.
6. Offer Support: Mention that they can contact you for clarification or assistance if needed.

See why Gaviti is ranked as the #1 Credit & Collections Software on G2: