How to Send Payment Reminders and Improve Customer Payments

Table of Contents

1. How Do You Write a Friendly Payment Reminder
2. The Problem With Manual Payment Reminders
3. How AR Automation Software Solves Late Payments
4. How AR Automation Improves Cash Flow and Reduces DSO
5. Answers to Common Questions About Payment Reminders

Key Takeaways

• Learn how to write and send polite, effective payment reminders.
• Discover the challenges of manual follow-ups and how automation solves them.
• Explore how AR automation software speeds up payments and improves cash flow.
• Answer common questions about friendly payment reminders.

Imagine this: You’ve delivered great work or a product, sent the invoice, and… crickets. Days or even weeks pass. You’re left wondering: Do I remind them? Is it too soon? Too late? How do I say it without sounding pushy?

Every business, large or small, has faced this situation. Timely payment reminders are critical for keeping cash flowing, but they can be awkward, time-consuming, and inconsistent when manually handled.

The good news? You can send reminders that are polite, professional, and highly effective without spending hours drafting follow-up emails or tracking down overdue invoices. Even better, automation can take care of it for you.

Let’s explore how to send better payment reminders and how AR automation software can solve the late payment puzzle for good.

How Do You Write a Friendly Payment Reminder?

Politeness is key. A payment reminder doesn’t have to feel awkward. In fact, it can strengthen your professional relationship when handled right. Here’s a simple structure:

1. Start with a Friendly Greeting:

   “Hi [Client’s Name], I hope this finds you well.”

2. State the Purpose Clearly:

   “I just wanted to send a quick reminder about Invoice #12345, which was due on [due date].”

3. Offer Assistance:

   “If you have any questions about the invoice, please don’t hesitate to reach out.”

4. Close Positively:

   “Thank you for your prompt attention, and we appreciate working with you!”

This tone feels polite, friendly, and professional—far from a harsh demand.

The Problem with Manual Payment Reminders

If you’re managing multiple invoices manually, sending reminders can quickly become a burden:

• You spend hours tracking which payments are due or overdue.
• Follow-ups fall through the cracks, leading to delays.
• Chasing payments takes time away from growing your business.

The result? Inconsistent reminders, late payments, and unnecessary stress.

How AR Automation Software Solves Late Payments

Now imagine a solution where payment reminders happen automatically. You set the rules—like sending reminders 3 days before the due date, on the due date, and 7 days after—and your AR automation software does the rest.

Here’s how it transforms your process:

• Automated Follow-Ups: No more manually drafting emails. Reminders are sent at the perfect time.
• Flexible Payment Options: Customers can pay instantly via credit card, ACH, or EFT—making it easier for them to act.
• Instant Invoice Tracking: You’ll know exactly when invoices are opened, viewed, or paid.
• Faster Payments, Less Stress: Automation ensures payments happen on time, improving your cash flow without endless chasing.

Instead of worrying about overdue invoices, you can focus on what matters most: running and growing your business.

How AR Automation Improves Cash Flow and Reduces DSO

Days Sales Outstanding (DSO) measures how long it takes you to collect payments. High DSO can choke your cash flow, making it harder to meet your own financial commitments.

AR automation software helps you:

• Reduce the time between sending invoices and receiving payments.
• Automate follow-ups to keep payments on track.
• Offer convenient, frictionless payment options to encourage faster action.

The result? Lower DSO, healthier cash flow, and fewer headaches.

Answers to Common Questions About Payment Reminders

How do I politely remind someone about a payment?

Start with a friendly greeting, state the purpose clearly, and offer assistance. Keep the tone professional and polite.

How do I send a reminder for a payment?

Email is the most common method, but automated reminders via AR software ensure consistency. You can also use SMS or phone calls for follow-ups.

What should I include in a payment reminder?

• Invoice number and due date
• Amount due
• A polite action request (e.g., “Please process payment at your earliest convenience.”)

How do you politely remind someone about money owed?

Focus on the transaction, not the person. Use language like “Just a gentle reminder about Invoice #12345…” rather than anything that sounds accusatory.

Here is a template you can use for reminding customers about payment:

Subject: Friendly Reminder: Invoice #[Invoice Number] Due Soon

Body:

Hi [Client Name],

I hope this message finds you well. I wanted to kindly remind you that Invoice #[Invoice Number] for [Amount Due] is due on [Due Date].

For your convenience, you can pay directly using the link below:

[Insert Payment Link]

If you have any questions about the invoice or need assistance, don’t hesitate to reach out.

Thank you for your attention to this matter, and we appreciate your prompt payment.

Best regards,

[Your Name]

[Your Company Name]

[Your Contact Information]

How AR Automation Software Like Paystand Fixes the Issue

Manually chasing payments is a thing of the past. Paystand’s AR automation solution makes it easy to:

• Automatically send polite, professional payment reminders at the right intervals.
• Provide customers with flexible, seamless payment options (credit card, ACH, or EFT).
• Eliminate manual reconciliation by automating payment tracking and reporting.
• Reduce DSO and improve cash flow predictability.

By replacing manual processes with automation, Paystand helps businesses get paid faster, improve efficiency, and strengthen customer relationships.

Polite, consistent payment reminders are essential for maintaining cash flow and positive customer relationships. But managing them manually can be time-consuming and inefficient.

With AR automation software like Paystand, you can streamline the entire payment process, from invoicing to follow-ups to reconciliation. Payments happen faster, cash flow improves, and your team saves valuable time.

Ready to stop chasing payments and start automating them? Learn more about our Canadian EFT solution.