What is a payment reminder? Explanation and examples.

A payment reminder is a polite prompt to let your customer know that an invoice remains unpaid. For you as a business owner, it’s an essential step in your credit control process—helping you stay professional while keeping a firm grip on your cash flow.

A payment reminder email is typically sent once the due date for an invoice has passed. The aim? To encourage timely payment without straining the relationship. Whether you’re sending a gentle reminder for payment message or preparing a more formal follow-up, clear communication is key.

Table of contents:

1. When should you send a payment reminder?
2. What are the costs of a payment reminder?
3. The difference between a payment reminder and a formal notice
4. Examples of a payment reminder
5. Tips for an effective payment reminder
6. Smart credit control with Payt
7. Frequently asked questions

When should you send a payment reminder?

It’s standard practice to send a payment reminder 3 to 5 working days after the due date. This serves as a friendly reminder of payment due. If there’s still no response, you can follow up with a second reminder. Each step should be tailored in tone and timing.

First payment reminder

A first payment reminder message—also known as a 1st reminder letter for payment—typically includes:

• Invoice number and issue date
• Due date
• Outstanding amount
• Payment instructions
• Timing: 3–5 days after the due date

Example:
“Dear [Name], according to our records, invoice [Invoice Number] dated [Date] has not yet been paid. Could you please settle the amount within 7 days? Many thanks!”

Second payment reminder

If no payment is made after the first reminder, send a second one 5 to 7 days later. This 2nd reminder email for payment should be more formal, with a clear call to action.

Example:
“Dear [Name], despite our earlier reminder, we have not yet received payment for invoice [Invoice Number]. We kindly request that the outstanding amount is paid within 5 working days. If we do not receive payment, further action may follow.”

What are the costs of a payment reminder?

In the UK, the costs you may charge for late payments are governed by the Late Payment of Commercial Debts (Interest) Act 1998. If you’re dealing with a business-to-business transaction and the customer fails to pay on time, you are legally entitled to add:

• Statutory interest: 8% above the Bank of England base rate
• Fixed compensation for debt recovery:

£40 for debts up to £999.99
£70 for debts between £1,000 and £9,999.99
£100 for debts of £10,000 or more

These amounts are designed to cover the administrative cost of chasing overdue payments. If your actual recovery costs exceed the fixed fee, you may also claim reasonable additional expenses, such as legal or collection agency fees—provided they are justifiable.

Note: these rights apply only to transactions between businesses. For consumer invoices, different rules apply, and any charges must be clearly stated in your contract.

Under the Limitation Act 1980, you have up to six years to claim interest and compensation in England, Wales, and Northern Ireland (five years in Scotland), starting from the original due date.

The difference between a payment reminder and a final reminder

Although often used interchangeably, there’s a clear distinction. A payment reminder is a friendly, early-stage message to inform a customer of a missed payment. A final reminder has a firmer tone, follows earlier messages, and often warns of potential legal or collection action.

A well-organised credit control process separates these steps clearly. This keeps your customer relationship professional and your payment flow predictable.

Examples of a payment reminder

Here are examples of a first and second payment reminder. If you’re short on time, a payment reminder short message sample can help you stay efficient without compromising clarity.

First payment reminder

Dear Sir/Madam,

Our records indicate that the following invoice is still outstanding: [Invoice Details] We kindly ask that you transfer the due amount of £… to [Bank Account] or use the payment link in the invoice.

If you’ve already made the payment, please disregard this message.

Kind regards,

[Your Company]

Second payment reminder

Dear Sir/Madam,

Despite previous notices, the payment for the following invoice remains outstanding. You’ve had sufficient time to pay, and the amount is now officially overdue.

[Invoice Details]

You have 14 days from today to transfer £… to [Bank Account] or pay using the link in the invoice.

If payment is not received within this period, additional charges will apply. In addition to the invoice amount, you may be liable for statutory or contractual interest and collection fees.

Collection charges will be £… If no payment is received, we may refer this matter to a collection agency. The 14-day period begins the day after this reminder is delivered.

We hope to avoid further action and kindly request payment as soon as possible.
If you’ve already paid, you may disregard this message.

Kind regards,
[Your Company]

Tips for an effective payment reminder

A well-written payment reminder not only increases the likelihood of timely payment but also helps maintain a positive customer relationship. Here are some tips:

• Keep your tone polite and professional
• Be specific: include the invoice number, amount, and due date
• Personalise the message when possible
• Include a clear call to action
• Use a recognisable email subject: e.g. “Reminder: Invoice [Number] Overdue”
• Make payment easy with a clickable payment link or QR code
• Follow up with a short call if there’s no response
• Schedule reminders on consistent days for better structure

Following these steps ensures your message remains helpful and professional—just like the way we do things at Payt.

Smart credit control with Payt

With Payt, you don’t have to manually draft or track payment reminders. Our software automates everything—from invoicing and reminders to formal notices.
You’ll get paid faster with less effort. And thanks to smart workflows and transparent communication, you’ll stay in control while keeping your customers happy.

Want to find out more? Download our brochure and discover how Payt can help streamline your credit control process.

Frequently asked questions