Invoice and Payment Letter Templates

Companies in all industries are completely dependent on their day-to-day financial inflows to continue their business. However, not all clients pay on time. Sometimes, collecting payments from clients for the products and services they have already received is challenging.

There are many reasons for late payments – no proper follow-ups, no communication, poor invoice drafting, delayed invoice delivery, improper invoicing format, and poor printing. These types of problems can lead a company to run into debt as there is no proper cash flow.

It can tarnish the image of a brand and also spoil company-client business relationships. Hence, drafting a proper invoice letter for payment is essential for every business, irrespective of its industry and size.

Every organization is required to send invoice letters and proof of payment letters at some point or the other. Invoice and payment letter templates can help save time and draft letters speedily.

Templates are ready-made drafts that can be used to speed up the entire process of printing and mailing invoices and payment letters. You will need to change the details, keeping the outlines constant – saving more than half the time that is required for these tasks.

Invoice letters are sent to speed up payments. It specifies all the details of a particular invoice and asks the client to honour the same. A payment details letter completes the task of informing someone about a payment made to them. Both of these letters are documents that need to be sent in a certain timeframe.

For example, a payment completed today should be communicated to a supplier now and not after a month. Payment and invoice letter templates can help fulfill these letters’ basic purpose: get paid on time and be informed about completed payments. Manually drafting every single letter can waste a lot of time and delay payments.

For different kinds of situations, there are different templates used. These templates are focused on different scenarios that can be created while dealing with payment collection activities. 

Invoice letters and letters of payment are sent on various occasions – part payment completed, advance payment receipt acknowledgment, due payments, reminder invoice letter for payment, and others. There has to be a template for every situation.

The finance teams of all small and big companies can use these templates to fill in some details and mail the letters quickly. Hence, invoice letter templates are required by all companies to draft letters based on any situation easily and swiftly.

PostGrid’s direct mail platform can help you with the templates as well as all the printing and mailing activities. The templates can be customized according to the model of the business and the situation for which it is used.

A business that sends well-drafted invoices and invoices letters is seen as a reputed firm. Even a simply drafted payment details letter with the company details and proper information can reflect professionalism and create a sense of reliability in the minds of your clients.

Invoice letter templates are used to optimize financial communication and receive payments on time. They are essential in maintaining the financial stability of your company. These templates can be used as a part of your daily financial communication to line up payments. Similarly, payment letter templates help clear payments and reduce liabilities. It also acts as a proof of payment letter.

 Also Read: Notice of Cancellation Letter Template

For writing a winning invoice letter for payment, companies should follow the following steps:

Use a Template

Using an invoice letter template can save time and increase your chances to draft and send a thoughtful letter. When templates are made and saved beforehand, you are able to include all the required pieces of information and mention the necessary inducing points. Drafting separate letters for every client and every situation can be tiresome, and it is likely that a lot of important points can be missed.

Hence, always use a template. PostGrid’s print and mail platform allows you to use its in-built templates. You can also build and save your own templates using the platform. Even payment letter templates help in drafting complete letters to fulfill the requirements.

Insert Your Full Address

Insert your address in your letter template. This part can be completely skipped if you are printing all the letters on letterhead. If not, you can easily insert the address in a common template and use it for all the letters. Add your company name and complete postal address to the letter, aligned towards the top-left side of the letter.

Make sure to follow all the Canada Post address guidelines, like not adding punctuation marks, writing in block letters, and leaving two spaces between the state name and postal code.

Add the Date

The date is supposed to be written on the next line after the address is completed. You can use the Canadian date format: January 1, 2021 (month date, year). Since your address was aligned towards the left side, your date should also be aligned in the exact same way. You can center the date while using a letterhead.

Insert the Mailing Address

Leave a line after the date and add the mailing address. Add a specific name above the address so that the letter reaches the right person in charge of completing payments. Always double-check with your client about the name that is supposed to be mentioned in the invoice and the name to whom the letters will be addressed. This is especially required for big companies where the accounts are handled by a separate team or by an outside party.

Furthermore, make sure to copy the mail to the concerned person to make them aware of the dues, even if someone else is supposed to release the payments. Add titles like Mr. and Ms. in front of the name.

Add a Subject

You need to add an informative subject line in your letter, irrespective of whether you are sending it through mail or email. Include everything that your client needs to know about the letter, for instance: “Invoice no. 856 for car repair services”, “Payment made for Invoice 856”, or “Invoice 856: Last week for payment”. You should be able to get the recipient’s attention instantly with the subject.

Add a Salutation

Use the same name as in the mailing address and open the letter with a salutation. If you know the person individually, you can use their first name, like Dear Ms. June, or else you can add their complete name, like Dear Ms. June Havens. When you are not sure about the gender of the person, simply use dear with the name.

Start with the Letter Body

The body should include all the relevant information. You can use a billing letter sample format to not miss out on the important details. Start with a friendly opening, after which you can get straight to the point. Ask the recipient to find the enclosed invoice and mention things like the payment terms, due date, early payment discounts, late fees, and payment method. 

Don’t forget to include a contact whom they can reach in case of any queries. You can close the letter body again with a friendly line. Ask them to confirm the invoice receipt. While writing the proof of payment letter, you can add the payment details such as transaction ID or check number, amount of payment, name of payer, date of payment, and invoice number against which the payment is made.

Write the Letter Closing

The closing should be written by leaving one line after the letter body. Only the first letter of the sign-off should be capitalized, and there should be a comma at the end. For example, if you are using the word, thank you, write it as “Thank You.” Insert your name on the next line. If a signature needs to be added between the sign-off and your name, leave four lines in between.

Mention Enclosures

Mention the attachments. Add the word “enclosures,” put a colon, and mention all the enclosures that you have sent with the letter.

Sample of Invoice Letter

Norda Stelo Ltd.

1015 WILFRID-PELLETIER AVE

QUEBEC CITY, G1W 0C4 

CANADA 

December 21, 2025.

MR JUNE HAVENS

978 ARGYLE ST N

HALIFAX NS B3J 2B3

Subject: Payment due for invoice no. 120

Dear June Havens,

Hope you are doing well. Please find attached the invoice for last month’s paint supplies. Invoice #120, dated November 20, 2025, is due next week. As mentioned earlier, December 30, 2025, is the due date for this invoice’s payment. Please note that we charge a late fee of $50 per day after the due date is crossed. You can get a discount of 20% if the payment is completed before the due date. You can send a check to the address mentioned above.

It was great working with you on this project. Looking forward to getting more contracts from your side.

Yours sincerely,

Kevin Jones

Norda Stelo Ltd.

Enclosures: Invoice no. 120.

Sample of Payment Letter

Japango HO

122 ELIZABETH ST 

TORONTO, ON M5G 1P5

December 21, 2025.

Maclean’s Magazine (Head of Finance)

1 MOUNT PLEASANT RD, 11TH FL

TORONTO, ONTARIO, M4Y 2Y5 

CANADA 

Subject: Payment Completed for Invoice No. 125

Dear Maclean’s Magazine,

Please find enclosed a check for the amount of $10,000. The said payment is for your invoice no. 125, dated December 10, 2025. As mentioned in the invoice, the amount is being paid for all the magazine advertisements during the year 2025.

We would like to thank you for your services and constant assistance in the field of print media advertising. We look forward to renewing your services for the upcoming year.

Thank you,

Japango Restaurants.

Enclosures: Check no. 1256.

Both the time of sending the invoice letter and the conditions under which it is sent depend on the main purpose of invoicing. Some of the appropriate scenarios for sending an invoice letter for payment are:

Advance Payments

Companies often use an invoice letter template for advance payments to draft and send well-written letters asking the customer or client to make a preliminary payment. It is done to minimize financial risks – especially when the amount of an order is huge. Advance payments help the companies get part of their payment to start with their work for that particular client.

On Purchase

When a customer avails of the services of a company or purchases a product from them, the company has the right to send them an invoice for the same. At this time, they can send an invoice letter along with the bill to induce instant payment. It is the most common time for sending a letter for bill payment.

After Certain Time Periods Between a Project

In long-term contracts, usually, the payments are made after certain milestones or stages. Otherwise, payments are completed after a fixed period of time (weekly, monthly, bi-monthly). Companies can send invoice letters every time an installment is due, enabling clients to remember and honour payments accordingly.

Late Payments

Some clients delay payments or even refuse to pay even after continuous follow-ups. Hence, a letter for late payment is sent to such clients to reduce overdue payments. For payments that are delayed for a long time, companies can send invoice letters mentioning the legal consequences of not honouring the payment.

 Also Read: Debt Settlement Letter

There are some things to be kept in mind when you are drafting an invoice letter. A winning invoice letter can help you get your payment on time without affecting your relationship with the client.

Draft an Invoice Letter of Only One Page

Extra-long letters are likely to be ignored, and the important details are completely missed out. It misses the point of writing an invoice letter for payment.

Tailor your Content to the Client

Address all the issues and provide clear answers to their queries. Include all the details that the client would want to know in order to proceed with the payment completion process.

Mention Upcoming Invoices (if any)

Mention any upcoming invoices in the same letter as a heads-up to the client. It is always good to keep informing the client about their current and future billings.

Convey Respect and Friendliness Both

Use a soft and formal tone that emphasizes the payment completion upfront yet in a friendly manner. However, take care not to get too friendly. The company-client relationship protocol should always be considered while interacting with clients in any form. Companies should show professionalism in all their interactions.

Keep the Letter To-The-Point

Make the letter easy to read and understand. There should not be any jargon terminologies, long sentences, and complicated words used in your payment details letter. Make the content understandable by the recipient—frame sentences in an active voice for better readability. Don’t force words and sentences, as they can be a turn-off for the client, and use simple phrasing. Being clear help avoid miscommunication.

Send your Letter for Bill Payment at the Right Time

Don’t delay sending these letters. Businesses need to be prompt in printing and mailing payment letters to reach out to clients in a timely manner. You should take care not to isolate the client for too long. Constant communication is the key to keeping the business alive and running well.

Prioritize Personalization

You should add some personal touches even while using a billing letter sample format. The basic invoice letter template can be kept the same, and a few changes can be made to it as per every client. 

It can help you maintain better relationships and get assured responses. Personalization is not just about changing the name on every letter. The complete content should be drafted around their client journey. Your letter should look like a personally drafted letter, not an automated one.

Focus on the Main Intention to Write the Payment Letter

Focus on the main goal: to receive a payment. Getting paid gets easier when you clearly mention the invoice number, date, and amount. Explain the description in short so that the recipient can remember and acknowledge the transaction that had taken place between the two parties.

Follow Up on your Invoice Letters

Invoice letters are originally sent with the invoice after completing a project or after the required products have been delivered. A follow-up invoice letter for payment can be drafted in another manner. It should clearly state details about the previous letters to induce the client to pay.

Proofread Several Times

Proofread the entire letter several times to make sure that nothing is missing. The invoice amount, description, method of payment, due date, invoice date, invoice number, and other required details should be mentioned for completing the purpose of sending the payment letter. Even a single mistake in the amount or the due date can cause delays and unnecessary complications.

Use an Understandable Format

Use a format wherein one paragraph focuses on one purpose only. Moreover, every sentence should give a different detail. This format will break down the letter into parts that can be remembered easily.

Be Extremely Polite at All Times

It doesn’t matter if it is the first invoice letter or the tenth – being polite shows your company in good light and secures clients. Don’t use any nickname; rather, call the person by the name they use for themselves. For example, if someone introduces themselves as Jason, you can simply call them Mr. Jason, not by any other name you find suitable.

Never Overshare Anything

Only mention the required details in the letter. If you want to share something personal about the company, make sure that it is relevant and helps your case to ask for payment. Any topic other than that or any gossip can lead to its consequences, such as – the client will never take you seriously and might not honour the bills. 

If the letter is sent after a call with the client, be sure to address the queries and respect their opinions. Try and offer solutions to the problems, if any.

Always Store Your Invoice Letters

Copies of all invoice letters and other official correspondence should be recorded and stored safely. You can use cloud storage to protect your files from any viruses or computer crashes. 

This step can enable you to keep your records safe and produce them whenever required. Storing invoice letters is mandatory in some industries. 

Hence, companies need to be well aware of the required compliances to be achieved so that they can carry on with their record-keeping tasks accurately.

Brand Your Letters

Companies can add their logo, tagline, and other such things to their invoice and payment letters. All the documents or direct mail sent out from a company should reflect its brand. PostGrid’s print & mail platform allows making unlimited customizations easily. 

Your messages should also be written in a way that shows your business in a good light and promotes healthy relationships. It is important to remember that a company’s mail form a big part of its advertising and brand representation.

 Also Read: Credit Union Marketing Trends

Invoice letters are sent to induce clients to complete payments at the earliest. However, there are some ways using which your invoice letter of payment can be more effective.

Be Clear on the Payment Terms

You can send a payment details letter to confirm the decided payment terms. There has to be a mutual understanding between both parties from the start. Moreover, if you send such a letter, it can act as evidence later, through which you can demand your payment according to the terms decided beforehand. It is advised to be clear on the payment terms in order to avoid any issues in the future.

Being Proactive

Sending an invoice letter of payment after a transaction takes place is not enough. You need to send follow-up direct mails and emails to keep reminding your clients about their dues. It is very effective in receiving payments without a lot of delays. 

Being proactive helps you stay in touch with your customers or clients – which is good for business as well. You can discuss further business with them while urging them to complete the past dues.

Offer Discounts on Early Payments

Offering incentives to motivate clients to pay is a good way of getting your dues cleared. You can give some discounts on the current invoice, or assure a certain rate of discount on your upcoming project with them. 

Either way, it can be a win-win for both parties. Initially, follow the billing letter sample format and draft a letter to be sent. If you receive any pushback from the client for payment, you can use this method.

Give Options for Part Payments

Part payments or installments are other ways to prompt your clients for payment. You can avoid late payments by giving your client the option to pay in small installments spread over a period of time. In the meanwhile, you can keep sending reminders through direct mail and letters.

Sending Invoice Letters using Registered Mail

You can send a letter for bill payment by using Canada Post-registered mail. You can get a mailing receipt that proves that you have sent a letter to your client. It also allows you to get a return receipt with the recipient’s signature. This return receipt is legally recognized for settling claims.

Oftentimes, proper use of an invoice letter can help companies get their payments in a timely manner and avoid any late payment issues. However, if the payments are still left unpaid by your clients, you can pass on the account to a collection agency. 

It can affect the credit score of your client. Hence, most clients would like to clear their payments before their details are given to the collection agency. In the last invoice letter for payment, you can mention it as a final warning before taking action. If the letter remains unresponded, you should consider contacting a collection agency.

If your client is adamant about not paying even after these steps, you might have to initiate a legal proceeding against them. Always consider this as the last option because you need to maintain good relations with everyone directly and indirectly related to your company. 

However, looking into this option should definitely be considered after all the efforts have been made. It is unlikely that this scenario will take place, given that you stay proactive, follow up from time to time, and take the necessary steps to prompt payments.

PostGrid’s print & mail platform and letter API allow drafting, printing, and mailing invoices and payment letters speedily. Send your mail in an automated manner saving time, resources, and effort and increasing efficiency. 

 Also Read: Credit Dispute Letter Template