5 Most Effective Collection Email Templates

January 27, 2022

When you leverage technology to automate your AR processes, the collection email template forms the basis of your strategy. In fact, your team will create several templates to address different stages of the collections process and different scenarios. Narrowing your options to the most effective templates can significantly reduce complexity while improving your return on investment.

What Is an AR Collections Email Template?

To ensure consistency, your AR team will design emails to prompt payment from your customers. Referred to as “templates,” these emails provide the basic structure your automation software can then fill-in with the correct information before submitting.

These are some examples of the information your AR software fills-in for a past-due invoice collection letter:

Payment due date for that client
Items and quantity
Total cost
Outstanding balance
Invoice number(s)

5 Effective Collection Notice Email Templates

To simplify your options, look at the five collection email templates that should comprise the core of your collections strategy. Review the sample email for the collection of payment options below. When you use them for your business, be sure to attach a copy of the invoice for all email templates.

1. Early Payment Reminder

EMAIL SUBJECT: [Name of Your Business]: Payment Reminder for Invoice [number]

BODY:

Hi [Contact Point’s Name],

We hope this email finds you well. This is a friendly reminder from [Name of Your Business] that your payment of [invoice amount] for Invoice [number] is due on [deadline].

While there is no obligation to do so, our team would appreciate confirmation that everything is on track for us to receive payment on time. If you have any questions or concerns, do let us know.

Best regards,

[Sender’s Name]

2. Due Date Notice

EMAIL SUBJECT: [Name of Your Business]: Invoice [number] Payment Due Today

BODY:

Hi [Contact Point’s Name],

We hope this email finds you well. This is a friendly reminder from [Name of Your Business] that your payment of [invoice amount] for Invoice [number] is due today.

If you have any questions or concerns regarding your payment, do let us know.

Best regards,

[Sender’s Name]

3. First Past-Due Notice

EMAIL SUBJECT: [Name of Your Business]: Invoice [number] PAST DUE

BODY:

Hi [Contact Point’s Name],

We hope this email finds you well.

We have not yet received your payment of [invoice amount] for Invoice [number]. The invoice was due [due date] and is now marked as overdue by [# days].

We understand mistakes can happen and would really appreciate it if you followed up with our team to let us know when we will receive payment.

Best regards,

[Sender’s Name]

4. Second Past-Due Notice

EMAIL SUBJECT: [Name of Your Business]: Invoice [number] OVERDUE

BODY:

Hi [Contact Point’s Name],

We hope this email finds you well.

Our team has yet to receive your payment of [invoice amount] for Invoice [number]. The invoice was due on [due date] and is now marked as overdue.

This invoice has remained unpaid for [# days] and is becoming problematic for our business. It is now urgent you let us know as soon as possible when we can expect to receive payment.

Note that failure to pay by [deadline] will result in an additional [amount] added to Invoice [number] as late fees.

Best regards,

[Sender’s Name]

5. Final Collection Letter and Notice of Legal or Collections Action

EMAIL SUBJECT: [Name of Your Business]: Invoice [number] LEGAL ACTION

BODY:

Hi [Contact Point’s Name],

Our team has yet to receive your payment of [invoice amount] for Invoice [number]. The invoice was due on [due date] and has been marked as overdue for [# days]. The amount due now includes late fees.

Attempts to reach your team and make satisfactory arrangements for payment have not been successful. Consequently, we have made the difficult decision to [sell the debt to a collections agency or take legal action to seek payment].

If we do not receive payment by [due date], we will have no choice but to move forward with our decision to [sell the debt to a collections agency or take legal action to seek payment].

Best regards,

[Sender’s Name]

How To Send a Collection Email

Gaviti simplifies the process of creating payment collection email sample options like these and other templates. Once created and scheduled, your AR team can move on to other aspects of collections, where their creativity can leverage better results for your company.

Book a free demo to see firsthand how it can work for you.