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How to word the first email reminder of an overdue account

May 12th, 2011 by Michael Todd
Debt collection can be tricky. You want the money you are owed, but you don't want to alienate a client. Michael Todd says the trick is to start softly and toughen up later in the process. He shows you exactly how to go about your first reminder.
Debtor days
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Semantics. The words you use are so important, especially so when chasing slow payers. It's such a sensitive topic. And the words that you use when you write to someone, whether in a letter or in an email, have to be chosen extrordinarily carefully or you run the very real risk of offending a debtor.

What is the best wording to use in an email reminder?

Here's an example of wording for a FIRST Reminder Email

Dear Sirs,

Invoice for: Camelot Ltd
Invoice No: 67299
Amount: $3,575.00

According to our records, the above amount appears to be outstanding.

If payment has been made, thank you.
If it hasn't, please organise for settlement in the near future.

Please contact me if you have any queries or if I can be of any assistance.

Kind Regards,

 

Analysis of the structure and wording used

* The salutation is fairly formal.
* It contains details of the invoice - easy reference for the debtor
* It blames "records" for contacting the debtor (leaving the creditor as the Good Guy)
* Payment "appears" to be overdue (we could be wrong - allows the debtor to retain their pride)
* Thanks the debtor in case the payment has been made (assumption of innocence)
* It doesn't say "pay", it asks the debtor to "organise" payment - positioning.
* It doesn't specify a pay-by date, it suggests "in the near future"
* It uses the words "me" and "I" so the debtor feels more at ease with a real person to contact.
* It makes the debtor feel in a strong position by offering to "be of any assistance" - this non-threatening wording actually encourages debtors to contact the creditor.
* "Kind Regards" - very old fashioned, again suggests a soft approach

The wording in the email above is deliberately very gentle; it allows the wording to become firmer in future communications.

You will find an article on how to word the second email reminder here.

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5 Comments

Comments

17 May 2011 - 7:21am — Knight
Knight's picture

Business correspondence

Good advice, the text is thoughtfully worded and effective. Watch the very gender specific salutation thought, half the population will find it irritating at best and offensive at worst, rather than endearingly old-fashioned. And don't make the mistake of believing women are being "precious", imagine any business correspondence address "Dear Mesdames" - unthinkable, illogical and very excluding!

17 May 2011 - 11:26am — Mike Todd
Mike Todd's picture

Gender Specific Salutation

Hi, good call. Please advise what the best salutation would be for a company. Something like "Dear Client" or "Dear Customer" reads a bit weird and "Dear Sirs" is the only generic one that I know of so I'd be really grateful for your input.

13 May 2011 - 4:47pm — Stella Nicholson
Stella Nicholson's picture

reminder of account

Michaels email is similar to the wording we use as a first contact for overdue invoices. We do send reminders for some of our clients before they are due. We send a copy of the invoice and ask if they are the correct person it should be sent to and if not, can they let us know and also let us know if any problems have arisen that we need to know about it. Then they can't use lost invoice or a problem as a reason for delayed payment.

—

Stella Nicholson
Be Paid Limited

13 May 2011 - 11:55am — Mike Todd
Mike Todd's picture

email reminders

Hi Phil,

Yes, yes and yes. We did this at one of clients a couple of years ago. The results achieved were FANTASTIC (see http://opsglobal.net/wholesale-distributor.html). They were achieved by sending out a circular to all clients and then, on 21st of the month BEFORE payment became due, we sent out emails with this wording .....

Dear Customer,

ANDREWS DIRECT- (ANDR13)
Amount Due - $31,104.70

We wish to remind you that at the end of this month the balance of $31,104.70 on your account is due and payable.

As advised in our email of 27 November (see below), any accounts that are not paid on or before the due date will be put on to Stop Credit until full payment of the due amounts is received.

Please contact us if your records disagree with ours or if you need copies of any invoices that make up the above balance. If not, we look forward to payment of your account in the near future.

Regards,

Karen Jones
Accounts Receivable
administration@yourcompany.com

VERY successful. Highly recommended AS LONG AS IT'S DONE in a non-confrontational manner. A long-winded reply, but, please consider! :) Regards, Michael Todd.

13 May 2011 - 10:02am — Phil Astley
Phil Astley's picture

Reminder of account.

Hi Michael - you're really explained very simply the finer points of this message. I'm a bit out of practice at chasing overdue amounts because most clients pay me in advance - but many times they ask me for advice for their situation. One trend I've noticed in recent times is people sending reminders that their account is almost due for payment. I'd be interested to hear any views from anyone whose tried this and learn whether or not it has any effect?

—

Phil Astley
www.businessacademy.co.nz

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About the author

Michael Todd's picture
Michael Todd

Michael Todd is the Senior Consultant to OPS Global. This business helps and shows companies in Australia, New Zealand and now internationally how to get paid more quickly by their account customers - without any client upset.