Late payments hurt cash flow—but chasing them doesn’t have to be awkward. Use the scripts, schedule, and policy below to recover payments quickly while keeping relationships intact.
TL;DR playbook
- Set clear terms up front (due date, grace period, late fee).
- Follow a calm, escalating cadence (pre‑due → due‑day → +3d → +7d → +14d → final notice).
- Remove friction (one‑click Pay Now, multiple methods, payment plans).
- Escalate professionally (hold work, formal demand, collections/claims if needed).
Table of contents
- Table of contents
- Set a late‑payment policy that prevents issues
- Proven reminder schedule (with templates)
- Payment‑friendly options that speed collection
- When to escalate—and how
- International & AP tips
- Automate it with Invoice Master
- Frequently Asked Questions (FAQ)
Set a late‑payment policy that prevents issues
Put this in proposals, contracts, and invoices:
- Due date: Use a calendar date (“Due Oct 24, 2025”), not just Net 30.
- Grace period: e.g., 3–5 days for bank delays/holidays.
- Late fee/interest: e.g., “1.5% per month (18% APR) after the grace period where permitted by law.”
- Deposits/milestones: 30–50% upfront; bill long projects in stages.
- Pause clause: Work pauses automatically on invoices 7–14 days overdue.
- Collections clause: Client covers reasonable recovery costs where allowed.
See also: 7 Invoicing Best Practices and 5 Common Invoicing Mistakes.
Proven reminder schedule (with templates)
Before Due (T‑3 days) — Friendly heads‑up
Subject: Quick heads‑up: Invoice {{#}} due {{Due Date}}
Hi {{Name}}, just a quick reminder that Invoice {{#}} ({{Amount}}) is due {{Due Date}}.
You can pay securely here: {{Pay Link}}.
Thanks so much—reply if anything looks off.
— {{Your Name}}
On Due Day (T0) — Easy action
Subject: Due today: Invoice {{#}} ({{Amount}})
Hi {{Name}}, Invoice {{#}} for {{Amount}} is due today.
Pay in under a minute: {{Pay Link}}. Appreciate your prompt payment!
— {{Your Name}}
+3 Days — Nudge + options
Subject: Past due: Invoice {{#}} ({{Amount}})
Hi {{Name}}, following up on Invoice {{#}}—now 3 days past due.
If helpful, we can split into two payments or process by card here: {{Pay Link}}.
Could you share an ETA?
— {{Your Name}}
+7 Days — Firm but polite
Subject: Action needed this week: Invoice {{#}}
Hi {{Name}}, Invoice {{#}} remains past due. To avoid late fees starting {{Late Fee Start}}, please complete payment here: {{Pay Link}}.
Let me know if there’s anything we should correct on the invoice.
— {{Your Name}}
+14 Days — Pause notice
Subject: Final reminder before pause: Invoice {{#}}
Hi {{Name}}, we value the work together. Per our terms, we pause services on {{Date}} if Invoice {{#}} isn’t settled or scheduled.
Pay here: {{Pay Link}}. If needed, propose a payment plan today.
— {{Your Name}}
+30 Days — Formal notice
Subject: Formal notice: outstanding {{Amount}} on Invoice {{#}}
Hi {{Name}}, despite prior reminders, {{Amount}} remains unpaid. Unless resolved within 5 business days, we’ll proceed with collections/small‑claims per our agreement.
To resolve now: {{Pay Link}} or reply with your plan by {{Date}}.
— {{Your Name}}
Tip: Keep one message per thread, include PDF + web link, and log phone call outcomes.
Payment‑friendly options that speed collection
- One‑click online payment: Cards + wallets (Apple Pay/Google Pay) reduce friction.
- Bank transfers/ACH: For larger invoices; show clear references and IBAN/SWIFT if applicable.
- Installments: Offer 50/50 or 3‑part plans for cash‑tight clients (get it in writing).
- Partial deposit to continue work: Accept a partial to avoid project stalls.
- Itemized clarity: Confusion delays payment—summarize totals and key deliverables at the top.
Deep dive: Payment Processing: Get Paid Faster and Psychology of Invoicing.
When to escalate—and how
- Pause work after your stated threshold (+14 days is common).
- Final demand letter (send PDF via email + certified mail).
- Collections/Small claims: weigh fee vs. amount owed; maintain a full paper trail.
- Write‑off policy for uncollectible balances; track and learn (tighten deposits/terms).
Not legal advice—requirements vary by region. Check local laws on interest/fees and recovery.
International & AP tips
- Currency & tax: Match client currency; show currency code and correct VAT/GST labels.
- Time zones & holidays: Adjust grace periods to avoid accidental “late” tags.
- AP portals & POs: Ask for PO number, vendor setup steps, and AP contact early.
- Documents: W‑9/W‑8BEN, company registration, and bank letters often unblock payments.
More: How to Invoice International Clients.
Automate it with Invoice Master
- Automated reminders: Configure the cadence above (pre‑due, due‑day, +3, +7, +14).
- One‑click Pay Links (Stripe): Embed secure Pay Now on invoices and the public invoice page.
- Recurring invoices: Bill retainers/maintenance automatically.
- Real‑time status: See when invoices are viewed and paid, then auto‑send receipts.
- Reports: Track overdue totals and average Days Sales Outstanding (DSO).
Start free at invoicemaster.org.
Frequently Asked Questions (FAQ)
What’s the best subject line for a late payment email?
Keep it clear: “Past due: Invoice {{#}} ({{Amount}})” outperforms vague subjects.
How many reminders are too many?
A focused 6‑touch sequence (pre‑due → due → +3 → +7 → +14 → final) balances persistence and professionalism.
What’s a reasonable late fee?
Common: 1–1.5% per month (where lawful) after a short grace period. Always verify local rules.
How do I ask for payment politely?
Acknowledge value, state the fact, provide a link, and offer options: “Settle securely here: {{Pay Link}}. Need a payment plan?”
When should I stop work?
State it up front and enforce consistently (e.g., pause at +14 days overdue).
How do I avoid repeats?
Use deposits/milestones, shorter terms (Net 7–14), and automated reminders. Segment chronic late payers and require upfront payment.
