A dunning letter is a letter that you send out to customers to ask them to remit payment. This is different from your payment notice or letters sent out with an invoice because, at this point, the payment has gone past due. You are asking the customer to pay immediately because their account has gone delinquent. Although a past due account is frustrating, that doesn’t mean the dunning letter needs to be harsh or rude. In fact, taking that tone with your dunning letter will make it less effective. Below we have templates showing you how to write a dunning letter professionally and effectively.
There are separate dunning letters that you will write based on the days past due of the customer. One will be sent at net 30, net 60, net 90 and net 120 days past due. Each letter will have a different tone, so the customer understands the seriousness of their delinquencies. These dunning letters can be used repeatedly with different customers by simply filling in the blanks and sent out automatically to past due customers using an accounts receivable software.
When you write a dunning letter for a net 30 day overdue account, you can be more relaxed. It is entirely possible that they did not receive the invoice or they forgot to pay and will do so immediately.
This is a reminder to pay , which was sent to you on . It has been 30 days past the agreed upon due date. Please contact us as soon as possible to settle this matter.
Make sure to follow up this dunning letter with a phone call. If the reason for not paying was because the invoice was never received, or maybe because documents were missing, you can settle the issues quickly over the phone.
Once you start to write a dunning letter for net 60 days past due, your wording can ask more from the customer.
We contacted you on to inform you about a late payment for . It is now 60 days past due. Please call us immediately to remit payment.
Once the account hits net 90 days past due, you may want to consider starting a formal collections process. When you write a dunning letter, make sure to notify the customer that you will begin the process if they due not remit payment immediately.
Your payment for has now gone 90 days past due. We have contacted you on multiple occasions to notify you of the issue. If you cannot or will not remit payment immediately, we will begin a formal collections process. To rectify this situation, call us immediately.
Finally, when you write a dunning letter for net 120 days past due, you will need to be as upfront with the customer as possible about the actions you will be taking. Depending on your policy for past due accounts at this point, whether you take legal action or not, this letter can vary. One good way to get customers to remit is by reporting the late payments to a credit agency. Explain that if payment is not received immediately, you will take further action.
Your balance for is now 120 overdue. Since we have not received any communication from you about the account, we are forced to take legal action and all other options to pursue this debt. Further, we will need to report this late payment to the appropriate credit agency. In order to resolve these issues, call us immediately.
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An invoice is an important document for an attorney. It is not just an instrument for billing and collecting money from clients. You invoice is a marketing tool as well. There are not that many occasions when you have the opportunity to get your client’s undivided attention. Review of your invoice is one of them. […]
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