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4. How to Write Strong Letter for Outstanding Payment with Email Sample

How to Write Strong Letter for Outstanding Payment with Email Sample

Outstanding payments will kill a business, and they should not be encouraged. Yes, if you keep silent, then it amounts to cultivating it. If your client keeps throwing excuses at you, you must tackle it. The client pays you and feeds you, all right, but it should be handled firmly and swiftly when they do not intend to keep your business afloat.

If you are a company more significant than a micro size, then you may get the service of a professional debt collector. You may have to deal with it independently if you are a freelancer, a solo entrepreneur, or a micro business. Before taking any legal action, the first step is to stress the client firmly about the outstanding payment.

"Being owed money and not getting paid is one of the worst feelings in the world." - Daniel Willey

Here is a sample email template to insist strongly about the pending payment and push the client to make it. You should have all the invoices sent to the client per milestone dates. It will be used as a critical reference in the payment reminder letters.

Tips for writing pending payment letter

• Do not send a surprise written letter or email communication. Speak to the client first and remind him politely about the pending payment.
• Before talking to the client about payment, check your side of the work. Ensure you have completed the phase, milestone, deliveries, etc., as per the contract.
• Give sufficient time to make the payment. Only after you are sure the client is evading making payment, go for a strongly worded letter or email. Remember that a traditional printed letter or email is the same.
• The first strong letter need not be overly strongly worded. It should be firm but polite. Words like kindly, please, thank you, etc., should be added.
• Please attach all the references and invoices in the letter. 
• Add phrases like "urgent attention" and "immediate action." You may add them to your email's subject.
• Need not describe the project, work, or deliverables. Go to the point of payment and talk only about it.
• Do not beg. You are asking for payment for the work you have done. 
• Before proceeding with any legal action, you should have sent at least two letters to remind them about the payment at sufficient intervals. 

Outstanding payment reminder email sample - strong letter 1

[Date]

[Client Name]

[Client Address]

Dear Sirs,

This is regarding your outstanding payment. There is no reason for non-payment, and we have done our part of the work. We want to remind you about the pending amount respectfully. You have already exceeded the payment terms we have agreed upon. We would be grateful if you could make the payment immediately upon receipt of this letter.

Details of the outstanding invoice:

1. Invoice number [00001] dated [mm/dd/yyyy] for amount [$ XYZ].
2. Invoice number [00002] dated [mm/dd/yyyy] for amount [$ ABC].

Eagerly looking forward to hearing from you as soon as possible.

Yours sincerely,

[Signature]

Outstanding payment reminder email sample - strong letter 2

If you do not receive a positive response to the above strong letter, move forward with the second strong letter before taking action. The critical point in this letter is you will be reminding the client about the payment clauses in the contract.

[Date]

[Client Name]

[Client Address]

Dear Sirs,

This is in continuation to our previous letter dated [mm/dd/yyyy]; you have not made the pending payment yet. We want to remind you about the awaiting amount respectfully. You have already exceeded the payment terms, and we have reminded you repeatedly about the same. We hope you will respond promptly to this matter, as it is urgent.

If you fail to pay on receipt of this letter, we can claim [X%] interest on the due amount as per our contract and statutory norms.

Details of the outstanding invoice:

1. Invoice number [00001] dated [mm/dd/yyyy] for amount [$ XYZ].
2. Invoice number [00002] dated [mm/dd/yyyy] for amount [$ ABC].

Kindly get in touch with us on this matter immediately.

Yours sincerely,

[Signature]

Outstanding payment reminder email sample - strong action letter

This will be the last letter before going on the action route. Give the client a week after sending the above letter and go for this. Make up your mind to go for legal action before sending this. If you are in a situation to send this letter (which is very strongly worded), then understand that you have already lost the client.

"Your silence will not protect you." - Audre Lorde.

Your communication with the client should be crystal clear before taking action on the outstanding payments. 

[Date]

[Client Name]

[Client Address]

Dear Sirs,

This is in continuation to our previous letter dated [mm/dd/yyyy]; you have not made the pending payment even after repeated reminders. The total amount pending is [XYZ], which is [ABC] days overdue. You have already broken our payment terms as per the contract. 

As informed in our last letter, please add [X%] interest on the due amount as per our contract and statutory norms. We will take legal action for your failure to make the payment accordingly. 

Details of the outstanding invoice:

1. Invoice number [00001] dated [mm/dd/yyyy] for amount [$ XYZ].
2. Invoice number [00002] dated [mm/dd/yyyy] for amount [$ ABC].

Please make the full payment immediately to prevent us from proceeding with legal action. This will be our final communication in this regard.

Yours sincerely,

[Signature]

Conclusion

In essence, do not be wary of asking for any outstanding payments. Timing is everything in business. As you keep completing every milestone, remember to send the invoice immediately. Use a software tool for automating all these processes. Even sending reminders to clients can be automated. Asking for payment is your duty; you need not feel shy about it. Being silent at the wrong time will put you on the back foot in the business. 

Written by Joe Kulandy on March 5, 2023