Published: October 2025
Late payments are a reality for nearly every Australian business. Research shows that 87% of businesses struggle with overdue invoices, creating cash flow challenges that can threaten operations and growth. Yet many business owners hesitate to chase payments, worried about appearing pushy or damaging valuable client relationships.
The good news? You can get paid on time while maintaining positive relationships with your clients. The secret lies in well-crafted payment reminder emails that are professional, friendly, and strategic. This guide shows you exactly how to do it.
A payment reminder email is a professional communication sent to clients regarding invoices that are approaching their due date or are already overdue. These emails serve as gentle nudges that prompt clients to prioritise payment whilst maintaining a courteous, professional tone.
Payment reminders aren't demands or ultimatums. They're polite notices that help clients stay on top of their obligations whilst giving you the tools to maintain healthy cash flow.
Late payments disrupt your ability to pay suppliers, meet payroll, and invest in growth. Regular payment reminders help ensure money flows into your business consistently, allowing you to plan and operate with confidence.
Clients are busy managing their own operations. Invoices can genuinely slip through the cracks. A friendly reminder often prompts immediate payment simply by bringing the invoice back to their attention.
Under Australian law, businesses can charge interest on overdue payments. Payment reminders that clearly communicate terms and due dates help prevent misunderstandings and reduce the need for penalty fees.
Well-written payment reminders show that you're organised and serious about your business. This professionalism often encourages clients to treat your invoices with the same respect they'd want for their own.
Strategic, polite reminders maintain positive relationships far better than awkward phone calls or aggressive demands. When done correctly, payment reminders become a normal part of your business processes rather than uncomfortable confrontations.
Timing makes the difference between an effective reminder and a wasted email. Here's the strategic approach successful businesses use:
Send a friendly reminder seven days before payment is due. This establishes clear expectations and ensures clients have your invoice front-of-mind. Include all payment details and confirm they received the original invoice.
At this stage, you're being helpful rather than chasing payment. Many clients appreciate the advance notice.
Send a polite reminder on the actual due date. Keep the tone light and professional. This serves as a final prompt before the invoice becomes overdue.
Once payment is late, send a follow-up within a week. Maintain politeness but introduce slightly more urgency. Acknowledge the oversight and request confirmation of when payment will be made.
For invoices remaining unpaid after two weeks, increase urgency whilst staying professional. Reference your previous communications and clearly state any late payment terms that apply.
For substantially overdue payments, send regular reminders every 10-14 days. Each reminder should escalate slightly in tone whilst remaining professional. Eventually, you may need to mention involving collections or suspending services.
Your subject line determines whether your email gets read. Be clear and professional:
Include your business name and the invoice number. Avoid vague subjects like "Quick question" or overly aggressive language.
Start with the client's name and a friendly greeting. "Hi Sarah" or "Hello James" sets a conversational yet professional tone. Avoid cold, impersonal openings.
Include:
Clarity prevents confusion and expedites payment.
Make paying easy. Provide:
The fewer obstacles to payment, the faster you'll receive it.
Include a PDF copy of the original invoice with every reminder. Clients shouldn't need to search their emails or request a duplicate. This small step removes a common barrier to payment.
End with a friendly sign-off and complete contact information. Encourage clients to reach out if they have questions or concerns. This openness often reveals payment issues you can help resolve.
Subject: Friendly reminder: Invoice #[number] due [date]
Body:
Hi [Client Name],
I hope you're well. I'm reaching out regarding Invoice #[number] for $[amount], which is due for payment on [due date].
Could you please confirm you've received this invoice and that payment has been scheduled? I've attached a copy for your reference.
If you have any questions about the invoice or payment process, please don't hesitate to reach out.
Thanks very much,
[Your Name]
[Your Position]
[Your Business]
[Phone Number]
[Email Address]
Subject: Payment due today: Invoice #[number]
Body:
Hi [Client Name],
Just a quick reminder that Invoice #[number] for $[amount] is due for payment today.
I've attached the invoice again for your convenience. If you've already arranged payment, thank you very much! If not, I'd appreciate if you could process this today.
Please let me know if you need any information or if there are any issues.
Best regards,
[Your Name]
[Your Position]
[Your Business]
[Phone Number]
[Email Address]
Subject: Following up: Invoice #[number] now overdue
Body:
Hi [Client Name],
I hope you're doing well. I wanted to follow up regarding Invoice #[number] for $[amount], which was due on [original due date].
We haven't yet received payment for this invoice. Could you please let me know when we can expect to receive payment?
I've attached the invoice again for your reference. If there are any questions or concerns, I'm happy to discuss.
Thanks for your attention to this matter.
Regards,
[Your Name]
[Your Position]
[Your Business]
[Phone Number]
[Email Address]
Subject: URGENT: Outstanding payment for Invoice #[number]
Body:
Hi [Client Name],
I'm writing regarding Invoice #[number] for $[amount], which was due on [original due date] and is now [number] days overdue.
Despite previous reminders, we have not yet received payment. Could you please advise, as a matter of urgency, when we can expect payment?
[Include if applicable: Please note that our payment terms include a late payment fee of [amount/percentage] for invoices overdue by more than [timeframe].]
I've attached the invoice once more. If there's an issue preventing payment, please contact me immediately so we can discuss a resolution.
I look forward to your prompt response.
Best regards,
[Your Name]
[Your Position]
[Your Business]
[Phone Number]
[Email Address]
Subject: Payment solution for Invoice #[number]
Body:
Hi [Client Name],
I'm reaching out about Invoice #[number] for $[amount], which is now [number] days overdue.
I understand that unexpected circumstances can sometimes delay payment. To help resolve this, I'd like to offer you the option of a payment plan. This would allow you to pay the balance in smaller, manageable instalments.
If this interests you, please let me know and we can work together to create an arrangement that suits both of us.
Please respond by [date] so we can finalise the details.
Thanks,
[Your Name]
[Your Position]
[Your Business]
[Phone Number]
[Email Address]
Subject: Payment received: Invoice #[number]
Body:
Hi [Client Name],
Thank you for your payment of $[amount] for Invoice #[number]. We've received it and your account is now up to date.
We really appreciate your business and prompt attention to this matter.
If you need anything else, please don't hesitate to get in touch.
Best regards,
[Your Name]
[Your Position]
[Your Business]
[Phone Number]
[Email Address]
Subject: Just checking in: Invoice #[number]
Body:
Hi [Client Name],
I hope everything is going well with you and the team.
I wanted to check in regarding Invoice #[number] for $[amount], which was due on [date]. I haven't seen payment come through yet, so I thought I'd reach out in case it slipped through the cracks.
If you've already processed payment, please disregard this email. Otherwise, I'd appreciate if you could let me know when we might expect it.
As always, if you have any questions or concerns, I'm here to help.
Thanks,
[Your Name]
[Your Position]
[Your Business]
[Phone Number]
[Email Address]
Subject: Following up on our conversation: Invoice #[number]
Body:
Hi [Client Name],
I'm following up on our recent conversation regarding Invoice #[number] for $[amount].
We agreed that payment would be made by [date], but we haven't yet received it. Could you please provide an update on when we can expect payment?
I understand things can change, so if there's a new timeline or any issues, please let me know as soon as possible.
I've attached the invoice again for reference.
Thanks,
[Your Name]
[Your Position]
[Your Business]
[Phone Number]
[Email Address]
Never let frustration creep into your communications, regardless of how overdue payment becomes. Angry or sarcastic messages damage relationships and rarely expedite payment. Stay calm, courteous, and professional throughout every interaction.
Use the client's name and reference previous conversations or projects. Generic, automated emails feel impersonal. A touch of personalisation shows you value the relationship beyond the transaction.
Avoid industry jargon or complex language. State exactly what you need: "Payment of $2,500 for Invoice #12345 by 25 October 2025." Clarity prevents misunderstandings and removes excuses.
Include payment links, bank transfer details, and clear instructions. The easier you make it to pay, the faster payment arrives. Consider whether you need to offer additional payment methods to accommodate client preferences.
Document every payment reminder you send. Note dates, responses, and any commitments made. This record proves invaluable if disputes arise or you need to escalate to collections.
If multiple reminders produce no response, consider phone calls or formal letters. Eventually, you may need to engage a debt collection service or seek legal advice. Set clear internal policies about when to escalate.
When emails go unanswered, try calling directly. Phone calls often break through email overload and demonstrate the seriousness of the situation. During the call, remain polite but direct. Confirm whether they received your emails and ask about any issues preventing payment.
If phone calls also go unanswered, send a formal final notice via registered post, clearly stating your intention to pursue collections if payment isn't received by a specific date.
When a client commits to a payment date but fails to follow through, address it promptly. Reference the previous commitment without being confrontational: "Following up on our agreement that payment would be made by [date]..."
Request a new, firm commitment and politely indicate that you'll need to consider alternative actions if this timeline isn't met.
Listen carefully to their concerns and investigate immediately. If there's a legitimate issue, address it quickly. If the invoice is correct, provide clear documentation supporting your position.
Sometimes disputes stem from misunderstandings about scope or deliverables. Work towards resolution rather than simply demanding payment.
Respond with empathy whilst protecting your interests. Offer a payment plan if appropriate, breaking the balance into manageable instalments. Put any agreement in writing.
Be cautious about continuing to provide services to clients with ongoing payment difficulties. Protect yourself by requiring upfront payment or deposits for future work.
Send your first overdue reminder within three to five business days after the due date passes. This timeframe is professional and gives clients a chance to process payment if they were slightly delayed. Waiting longer allows the debt to grow in the client's mind from "slightly overdue" to "significantly late," making them less likely to prioritise it.
After three to four email reminders with no response, switch communication methods. Call the client directly to discuss the outstanding invoice. If phone calls also go unanswered, send a formal letter via registered post. This demonstrates seriousness and creates a paper trail. If you still receive no response, consider engaging a debt collection service or seeking legal advice.
Yes, Australian businesses can charge interest on late payments under the Late Payment Terms in Small Business Contracts guidelines. However, you must have clearly communicated these terms in your original agreement or invoice. Standard commercial interest rates apply. Alternatively, you can claim compensation for debt recovery costs. Always ensure your payment terms are transparent from the outset.
Use accounts receivable software that allows customisation of automated reminder sequences. Personalise templates with the client's name, specific invoice details, and your direct contact information. Set triggers based on invoice status rather than sending generic mass reminders. Review automated messages periodically to ensure they maintain an appropriate tone and remain effective.
This depends on the value of the relationship and the severity of payment delays. Consider implementing stricter payment terms for habitual late payers: require deposits, shorter payment windows, or payment upon delivery. Some businesses eventually move chronic late payers to a cash-on-delivery basis. If late payments significantly impact your cash flow, it may be better to part ways professionally and focus on clients who respect your payment terms.
A payment reminder is a courteous communication that alerts clients to upcoming or recently overdue payments. It assumes good faith and offers assistance. A demand for payment is a formal, final notice that typically threatens legal action or collections if payment isn't received by a specific date. Use reminders for normal payment follow-up and save demands for situations where all other attempts have failed.
A typical sequence includes four to six reminders over a six to eight-week period: pre-due date, due date, early overdue (3-7 days), overdue (14 days), seriously overdue (30 days), and final notice (45-60 days). After this sequence, if you've received no payment or communication, it's reasonable to escalate to formal collection procedures or legal action.
This depends on your business model and risk tolerance. Many businesses continue services whilst chasing payment, but this risks accumulating additional unpaid debt. Consider suspending services or requiring payment of outstanding balances before continuing for clients who repeatedly pay late. Include these terms in your service agreements so clients understand the consequences of non-payment.
Scale Suite provides Australian small and medium businesses with comprehensive financial management solutions, including automated invoicing and payment reminder systems. We help you maintain healthy cash flow whilst preserving valuable client relationships through professional, timely communications.
Our platform integrates with your existing accounting software, automates reminder sequences, and provides insights into payment patterns so you can identify issues before they become problems. Visit www.scalesuite.com.au to discover how we can streamline your accounts receivable process.
Explore additional resources for managing your business finances effectively at www.scalesuite.com.au/resources.
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