Tips and Tools On How To Prepare Templates For Chasing Payments

Be it a small or big company, incoming and outgoing payments are a fundamental element of a business operation. An invoice serves as a billing document issued to the buyer from the seller indicating the sold product, quantity, price, and agreed-upon terms for payment. Invoicing helps you track payables and receivables for buyers and sellers.

It has also opened gateways for freelancers and distant workers to request payment from their foreign employees. All thanks to technology that made sending electronic invoices possible through the best invoicing software solutions.

Introduction to E-invoicing

The E-invoicing market is slowly making its name globally. It is expected to reach $24.7 billion by 2027, an 80% increase from $4.6 billion in 2018, according to an article published by Brodmin. Using e-invoicing enables businesses to get paid faster and more efficiently. You can send this document to your clients in a pdf format which they can print shall they need an actual copy. Apart from avoiding the pandemic’s further infliction and getting paid faster, using a payment reminder template gives you more room to do other vital works than creating a new invoice every time, which is time-consuming.

It is essential to have a standardized format for an e-invoice to make it competent and professional-looking to give an impression to your customers of an organized and polished company than issuing unsystematic-looking handwritten invoices. Google docs invoice template free are easy to customize — change colors, fonts, and add your own logo to send a well designed invoice.

After a finished transaction, sending a copy of the invoice might not be enough, and you may need to have a few conversations with your customers. Below are the tips for chasing payment email templates.

Tips in Email Templates in Requesting for Payment

Sending an invoice email serves as the cover letter of your transaction with your customers, stating the essential details of the sale. It is a standard and an integral part of business communication to provide the information the customer needs in an invoice email. A request letter for payment release is a formal letter written when a person is yet to receive their payment from a person/organization.

Email #1: Make It Short, Polite, and Informative

The payment request email days before the due date should sound polite and friendly and ensure that your client is aware of the transaction and payment terms. By sending an invoice, you are not promptly asking for payment; instead, you are giving your client ample time to prepare the payment.

It also gives an impression to your customer that you have an organized system that tracks invoices and encourages them to pay on time. This template should include the transaction’s basic information to remind them which trade you refer to and avoid confusion.

Email #2: Cordial, Straight To The Point, and Clear in Objective

It is important to maintain a kind and friendly tone to your customers since the payment is not due yet. Confirm from the customer that they receive the invoice and that there is no mistake and miscommunication within the sale.

When writing a template for the payment request for the due date, ensure that your email looks concise and is friendly sounding. Send a follow-up email with a clear call to action, a straightforward call to make a payment.

Email #3: Determined, Informative, and Assertive

A few days after the due date, your customer has not yet made the payment. Either they deliberately do not intend to pay or forgot about it. Writing an overdue invoice letter, including a copy of the invoice, or making a call to the client will help expedite the payment request.

The email reminder must be firmer, emphasize that the sale compensation is overdue, and use a more direct call to action. Ensure that the email includes the invoice information, such as the invoice number, the total amount due, agreed-on payment terms, and when the delivery is received.

Email #4: Direct, Ask For Confirmation, Emphasize Overdue Time

Two weeks post-sale, the client has not yet made any payment. Although it can be bothersome, it is vital to maintain composed and professional communication with your customer. Consider straightforwardly writing a payment email reminder and a firm request to make payments immediately.

In a published article by EXIM, one in every five invoices is paid more than two weeks late, becoming common today.

Directly asking the client and confirming that they received the invoice from their end will minimize the chances of ignoring the email request. Sending a notice about the interest charge for overdue payments is a viable option depending on the agreement made by the vendor and client.

Email #5: Aggressive and Firmer Approach

It is necessary to remain courteous and professional even though the payment is not yet accomplished a month after the sale. It requires a more aggressive and firmer approach after sending payment reminder messages and being intentionally ignored by the customer. Notifying them of overdue interest charges and possible discontinuation of future transactions can be used in persuasion too.

Refrain from sending threats and allegations as it may cause a bigger problem, and you will probably not get any payment.

Sending Email In Pursuing Payments

It is imperative not to let your emotions consume you when not receiving payment on time. It is vital to know how to chase payment politely to preserve a healthy working relationship. Avoid sending personal messages, and keep your email reminder clear and precise. Threatening can only trigger troubles and is proven ineffective in chasing payment from your customers. Using a free receipt template is the best way to ensure that all necessary details are included in the invoice sent to your customers. 

Identification and Contact Information

When chasing payments through email templates, make sure to include all necessary identification and contact information:

• Include supplier name and contact information
• Indication of the name and contact information of the client

This information will make it easier for clients to know who they are dealing with and enable them to reach out if any issues must be discussed.

Late Payment Reminder

In your reminder emails, include all pertinent details regarding overdue payments, such as:

• Clear indication of overdue payment and its details
• Repeated reminder of the terms and conditions of payment

By continuously reminding clients of their financial obligations, they are more likely to prioritize settling their debts.

Establishment of New Terms and Conditions of Payment

If the client is unable to make payment as initially agreed upon, it may be worth considering alternative compensation options or establishing new terms for debt repayment:

• Offering alternative compensation options or debt repayment schedules
• Discussing the possibility of establishing agreements and agreeing on new conditions

By showing flexibility and understanding, you may be able to salvage your relationship with the client while still securing compensation for services provided.

Prosecution of Payments and Next Steps

In cases where clients remain unresponsive or refuse to pay, it’s essential to outline the next steps that will be taken to secure payment:

• Discussing possible steps in the event of no response or non-payment
• Indication of the consequences of non-compliance and possible legal action

This sends a clear message that you are serious about collecting compensation and willing to pursue legal action if necessary.

Professional Signature and Contact Information

Concluding your payment pursuit email with a professional signature and contact information is essential for maintaining a level of professionalism and encouraging further interaction with the client:

• Signing a template on behalf of the supplier
• Providing contact information for feedback and further interaction

Incorporating these key elements into your email templates will help to automate your payment chase process and make it more efficient. Remember the importance of personalizing each template to suit the needs of the given individual and the specific situation at hand. Additionally, using a tracking system and monitoring client activity will give you valuable insights needed to analyze the effectiveness of your approach and make necessary adjustments. Finally, be mindful of the language you use in your reminder messages, ensuring it is appropriate for the setting and conducive to maintaining positive client relationships.