Overdue Payment Reminder Letter

An overdue payment reminder letter is a way to prompt an individual or company to settle a debt that has been unpaid for some time. The letter will include important details such as the amount owed when they debtor should pay and any consequences if they don’t adhere to the instructions in the letter.

Though one can remind the client to settle the debt via phone or email, the best way to remind the debtor to pay the money is by writing a letter. The letter can act as court evidence; you can also file the later for later reference.

Though the payment is overdue, avoid forcing the individual/company to pay. The letter should be a request for payments. It’s difficult to get the right words to write the letter. Here, a sample or template can save your day.

Overdue Payment Reminder Letter Format


If you have a company letterhead or logo, it should appear as the heading of the letter. A company letterhead portrays professionalism, besides the recipient will know the origin of the letter once they receive it.


The date of writing the letter should appear after the letterhead. A date is an essential tool for reference.

Recipient’s address

After the date, the recipient’s address should follow.


Use the right salutation for the recipient. Common greetings use in these sections includes dear sir/madam, Mr. /Mrs. / Ms. / respected sir/madam. After the title, if possible include the recipient’s name.


The body of the payment reminder letter should comprise one to three paragraphs. The first paragraph should contain the relevant details about the payment.

Use the other paragraphs to convey any other critical details about the debt.

Express hope for a speedy settlement of the debt as you end the letter.

Complimentary close

Your payment reminder letter should end with a nice close. Common phrases used include; “Yours faithfully.” Cordially”, “Sincerely yours,” “Sincerely,” “Respected.”


The last section of the letter should include your name, designation, company, and contacts.

1st polite overdue payment reminder

What to include?

  • The recipient’s name and address
  • Current date
  • Your name and address
  • Amount due for payment
  • When the payment should have been made
  • Action to follow if the recipient won’t honor the letter
  • How to pay

Sample letter

Dear May,Kindly allow me to inform you of overdue payment for your account; this is the invoice we want you to consider.

Invoice no. …………. Amount

How to pay: Website (link), PayPal address (link).

We have received no payments for the stated invoice; let us know if the amount has been settled. If you have any queries on the account lets us know.

Remember our payments policy dictates that all payments must be made in 30 days after receiving the invoice. After 50 days late payments attract a 5% penalty.

Thank you for being our reliable and trusted customer.



2nd Firm late payment charges reminder letter

What to include?

  • Company letterhead
  • Receiver’s name and address
  • Date
  • Outstanding amount
  • Recipients account details
  • Steps to follow if they ignore the reminder
  • Payment options

Sample letter

Important noticeDear Mike,

I write this letter to remind you-you’re over 80 days late for payment of invoice no…….

Kindly make sure you pay the stated amount without further delay.

Invoice no…….. Date due……… Amount……….. Plus a late payment of 5%.

Payment options: PayPal (link), website (link).

If you need any clarification on this matter, don’t hesitate to contact us.

As agreed in our contract all invoices must be serviced the latest 30 days after receipt. Invoices that’re 80 days late for payments, demand discontinued business.

We expect a fast resolution of this payment to continue in business.

Thank you.



3rd Final strong overdue payment reminder

What to include?

  • The current date
  • Your name and address
  • Relevant recipients account details
  • Amount outstanding
  • A reference to past communication on the matter
  • Penalties for overdue payment
  • Consequences that will follow

Sample letter

Critical notice: Your account is in serious breach of contractDear John,

We ask you to take immediate actions regarding your account and invoice number…… Despite several letters informing you of your overdue payment; we have received no response so far. It essential to note you’re in a severe breach of contract.

We’ll have no choice but to take the following actions if you ignore this final letter.

  • Hand over your case to our collection agent
  • Report the matter to I.R.S as “bad debt loss.”

Contact us so we can negotiate a favorable repayment plan. The invoice in questions is invoice no……. date due…….. Amount plus 5% late payment fee.

Remember our contract states that all invoices must be serviced 30 days after receiving. And after 80 days we can’t proceed with business.

We hope you’ll grant this matter the seriousness it deserves.



Tips for writing an overdue payment reminder letter

  • Sign the letter – Since the letter can have legal implications, make sure you hand-sign the letter. A hand signature will also imply professionalism on your part.
  • Keep copies of the letters – Every time you sent a late payment letter to a client make sure you keep a copy of the letter.
  • Indicate a deadline – Each letter must have a deadline when the recipient should meet the instructions. The essence is to give a chance to the recipient to settle the debt.
  • Embrace a polite tone – Though the individual/company is late in payments, avoid using any rude language as you demand payment. Polite words can motivate the party to clear the debt