Past Due Accounts Receivable Collection Letters

It is a tiresome and uncomfortable task to ask clients to pay their dues, but it is important. It keeps the cash flow steady and helps businesses operate normally. A lot of customers will inevitably miss their payment due dates. 

Some of them are genuinely unable to pay, while others might want to get away with it. Companies can adopt certain policies to smoothen their accounts receivable collection process. The first thing you can do is call up your clients or drop an email. Your sales personnel can talk to them personally and discuss the payment dates, but it is not always enough.

Print and mail overdue invoice collection letters, as your customers tend to take such letters more seriously than a phone call or email.

Remember, you must draft professional letters that are considerate and polite. Also, at the same time, make sure that they are firm and precise to get the work done.

You can use unpaid invoice letter templates to make your work faster and easier. In this blog, we have included a lot of samples that you can edit and use. We have also discussed how you can change the tone of your letter to grab the customer’s attention.

If you send regular payment reminders, you might not have to draft any overdue bill letters. Reach out to clients before their invoice due date to receive payments faster.

Keep it short and sweet. You cannot insist on getting the payment completed because the due date has not arrived. Take care that you are not too pushy in this reminder. Rather, please inquire about the customers’ well-being and remind them of the invoice. Also, don’t overwhelm them with too many details.

Find below a sample payment reminder: 

Tom Hansen

EKGGlobal Inc.

123 Mainsteet,

Montreal Canada 

17th August 2025

To,

May Reese

Hello Ms. May,

Hope you are doing well! This is to remind you that invoice #8562, mailed to you on 15th July 2025, will be due next week.

We understand that you are occupied with a lot of work. But we’d appreciate it if you could take the time to go through the invoice.

Please let us know if you have any doubts or questions. We would be happy to assist you.

Thank you for your time!

Regards,

[Your Signature]

Vice President – Operations

Payment Reminder for Invoices Due Today

This reminder is the most important one in the entire sequence. The bill isn’t overdue yet, so it is advisable not to be too aggravating. Your motive is to reach out to customers at the right time and ask them to complete the invoice payment. It is your perfect opportunity to contact them.

Again, keep it short, as it is only a reminder. Talk to the point and use a humble tone. Mention your past conversations with the customer.

Find below a sample letter for accounts receivable collection:

Kate Huntley 

Starscreen Group of Companies.

17th August 2025

To,

Mason Serrao

Hi Mason,

I hope you are having a nice day. We spoke on the phone a few days ago. This is regarding invoice number 236A, dated 17th April 2025.

As discussed earlier, the payment for the said invoice is due today. Please find the payment link: www.xxx.com/payments. 

You can also send us a check at the below-mentioned address:

Star Screen Group of Companies

47th Avenue.

Carcross, Y0B 1B0

Feel free to reach out in case of any questions.

Thank you for your business!

Sincerely,

Kate Huntley 

Senior Manager – Marketing.

The First Unpaid Invoice Collection Letter

Since it is the first collection letter, keep it informative and professional. Mention the following details in this accounts receivable collection letter:

• Number of days past due
• Amount due
• Transaction summary
• Previous attempts to contact the customer
• CTA – What do you want the customer to do next?
• Late payment fees
• The time limit to complete the overdue payment
• Your contact details

By the time you draft this letter, you will have already sent a few reminders. You would have also already spoken to the customer personally about their dues. Thus, it would help if you had strong follow-ups from now on.

There might be several reasons why the payment is not completed. Try finding out these reasons before you get too pushy.

Once the due date passes, you can send your first overdue invoice collection letter. Here’s a sample:

Alice Smith\

Toronto Kitchen Pvt. Ltd.

MS LEE 4251 ISLINGTON AVE 

Toronto, CANADA

17th August 2025

Elijah Noronha

AZW Interiors

Toronto.

Hello Mr. Elijah,

We hope you are doing well. This is a reminder regarding your invoice #80356, which is now overdue by 7 days.

As per our records, the due date was 10th August 2025. The total amount due is $52,000. Please note that a late fee of 18% p.a. is charged to your account.

We mailed you the original invoice copy on 22nd June 2025. In case you haven’t received it, we have attached a copy. You can pay on our website through net banking/Paypal/credit card/debit card.

Please let us know the payment status for this invoice. Feel free to contact us at +1 (816) 555-2493 if you need clarification.

Thank you for your cooperation!

Best,

[Your Signature]

Enclosed: Invoice #80356

The Second Unpaid Invoice Collection Letter

The second past due accounts receivable letter comes into the picture only when your first letter has been ignored. You need to be assertive this time. But stay professional and polite.

The second letter is sent between 30-60 days past the due date. Add the late payment penalties as mentioned in the original invoice. Don’t forget to also remind customers of the payment terms discussed earlier.

Mention all the details that you mentioned in your first letter. You can also offer to draft a payment plan that is acceptable to both parties.

Find below a sample overdue bill letter for 30-60 days past due invoices:

Chris Parker

Modern Bolt Manufacturing Co.

Wellington Street.

Brampton, On L6R 2G6

Canada

To,

Peter Graham

Dear Mr. Peter,

Your invoice #0682 is now 45 days overdue. We need your urgent attention to resolve the matter.

We tried to contact you a couple of times earlier but received no response. If there are any issues, please let us know. We would also be happy to arrange a payment schedule for you.

The invoice copy was already emailed to your department. In case you didn’t receive it, please find the details below:

Invoice date: 3rd May 2025

Due date: 3rd July 2025

Amount due: $29,430

Days past due: 45 days

Late fee charged: $430 (@12% p.a)

We accept payment via credit card, debit card, and net banking. You can choose from among these options and pay on our website (www.xyz.com).

Please drop me an email at chris@xyz.com regarding the payment status.

Thank you!

Sincerely,

Chris Parker

VP – Sales and Marketing

The Third and Final Unpaid Invoice Collection Letter

Writing the third accounts receivable letter can be frustrating. All your attempts to contact the customer have failed, and there has been no response yet. But you need to stay calm and keep up with your professional tone.

The likelihood of an invoice getting paid reduces with every week. So, it is important to continue sending such letters.

The third letter should inform customers about your next step. Tell your customers that you would be compelled to hand over the invoice to a collection agency. If the invoice amount is quite large, you can also mention involving a lawyer.

Here’s a sample of the final accounts receivable collection letter:

Jackson Langdon

Langdon Computers Inc.

3162 Edson Drive

Alberta, T7E 1V0

17th August 2025

To,

Adam Fielding

ABC Associates.

Dear Mr. Adam,

This is to inform you that the invoice dated 7th March 2025 is now 102 days past due. This is an urgent matter, and we need your immediate attention to it.

We tried calling you several times over the last 3 months and got no response. All our previous payment reminders and letters have also received no reply. It will be appreciated if you reach out with a valid reason for the non-payment of the said invoice.

Please find the invoice details below for your reference:

Invoice date: 7th March 2025

Invoice no.: 1216

Due date: 7th May 2025

Amount due: $38,598 (inclusive of interest @8% p.a)

Days past due: 102 days

We have also attached an invoice copy. Kindly remit the payment within 2 business days. You can send a check to the address mentioned on the letterhead. Kindly refer to the details in the invoice for direct transfer to our account.

If the payment is not received within the time frame, we will be forced to take legal action. Feel free to contact us if you have any questions.

Sincerely,

Langdon Computers

Director.

Enclosures: 1 (Invoice #1216)

Never wait for an invoice to become overdue to draft a payment collection plan. You need to have robust policies from the beginning. Find below some steps that you can undertake to avoid late payments:

Be Clear About Your Payment Terms

Discuss your payment terms in advance with customers, especially the new ones. Many companies write “Due upon receipt” on their invoices. Such phrases can leave room for incorrect interpretation by customers.

Always fix a certain number of days or months and mention the specific due date on the invoice. It becomes easier for customers to check the invoice and know when it is due. Before mentioning the payment terms on the invoice, discuss them with customers. This way, you can remind them of this conversation in case the payment is overdue.

Charge Late Payment Penalties

If you start charging late payment penalties, customers are likely to pay you as soon as possible. Like the payment terms, also mention these charges to customers beforehand.

You can decide upon a certain rate of interest and include it in the original invoice.

Be Polite in Your Letters

While writing a collection letter, be gentle and polite. We have demonstrated it above in all the sample collection letters past due accounts.

Use words like “Thank you” and “We would appreciate it if..” A polite tone can help you set a good example of professionalism. It also motivates customers to complete their payments faster.

Attach the Invoice

Attach the invoice with every email and letter. This way, customers cannot make the excuse that they never received it. Also, take care that you are sending the invoice to the concerned person.

Sometimes, it is very easy to get clients and increase sales. But the difficult part is getting paid on time. Thus, companies should be proactive about their invoices. Keep in constant touch with customers.

If you don’t know how to write a letter to collect overdue invoices, you can use PostGrid’s print and mail API. PostGrid’s API can integrate with your CRM and write an effective letter in less than half the time. You can also use one of its pre-built mailing templates.

Save a lot of time and streamline your debt collection process with PostGrid. You can print and mail accounts receivable letters with efficiency and ease.