Collection letter template: Third or fourth attempt
When researching collection/dunning letter templates, the common piece of advice is to start out with a friendly reminder and then add a little bit of urgency and pressure as each note goes out.
But one thing we found interesting and, to be honest, a little bit concerning was how many times a third or fourth email template would make reference to late fees or shutting down the service altogether.
That seems wild to us. In the course of just four emails, a vendor could go from saying, “Thank you for signing the contract! Welcome to the family! We’re excited to work with you!” to, “We need payment ASAP or else we’re breaking up.”
This escalation happens because vendors are waiting way too long and aren’t being strategic in their follow-up. Vendors will often reach out once at Day 1, again at Day 31, another at 50, then 65, etc.
Instead, why not send your second, third, fourth follow-up email within those first 30 days? And there wouldn’t need to be any mentions of late fees/shutting things down at all. A sample cadence might look something like this:
First email: Here’s the invoice (Day 1)
Second email: Just want to confirm you received our invoice. Please give us a call if you have any questions. (Day 7)
Third email: “I’m sharing a friendly reminder about the invoice we sent over last week. I haven’t seen a payment come through yet, and I’m just making sure that it stays top-of-mind. It’s easy to pay the invoice in just a click if you have time now.” (Day 15)
Fourth email: Quick reminder: Next Friday is the due date. I have attached the invoice here in case the original note has been buried in the inbox. Have a great rest of the week! (Day 23)
This type of approach is how vendors see their payments arrive on time and even before the 30-day mark.
Other insights from FinanceFuel
Collection letter templates: 60 days past due
FinanceFuel is an accounts receivable management solution that automates manual tasks to collect payments 25–50% faster. You can learn more about FinanceFuel on our website or, if you’re interested in speaking directly with a member of our customer success team, send us a note (sales@financefuel.co) and we’ll get back to you right away.
