Sending a payment reminder: when, how and sample texts

Why invoices stay unpaid

An unpaid invoice usually has an ordinary cause:

• The invoice reached someone who does not pay, such as the tenant instead of the owner.
• The customer is waiting for something: the agreement of the co-owners, an order form number, an answer to a question about an hour charged.
• Nobody follows up the due dates. Reminders go out when there is time, and there rarely is.
• The reminder is missing information, so the customer first has to search for which invoice it is about.

When should you send a payment reminder?

Agree on a fixed sequence and follow it for every customer. A reminder then becomes an ordinary step in the administration. A simple sequence:

Call at the second reminder: a conversation brings the real problem to the surface faster than a third email. You can skip the reminder before the due date for regular customers who pay on time.

What goes in every reminder?

A reminder that does not make the customer search is paid faster. Include at every step:

• the invoice number and the invoice date;
• the outstanding amount, and what has already been paid in the case of a partial payment;
• the due date;
• the structured payment reference (gestructureerde mededeling / communication structurée) and your IBAN;
• the invoice again as a PDF attachment;
• a contact person with a name and phone number.

Mention the work and the address too. A property manager (syndic) with a lot of invoices recognises an address faster than a number.

Sample texts for a payment reminder and a demand for payment

Adapt the words in brackets.

Before or on the due date

Subject: Invoice [number] is due on [date]

Dear [name], a short reminder: invoice [number] of [date] for [the work] is due on [date]. Please transfer the amount of [amount] to [IBAN] with the reference [structured reference]. If the payment has already gone out, you can ignore this email. Kind regards, [name and phone number]

First reminder after the due date

Subject: Reminder: invoice [number] is still outstanding

Dear [name], invoice [number] of [date] is still outstanding, for [amount]. The due date was [date]. Could you transfer the amount to [IBAN] with the reference [structured reference]? You will find the invoice attached. If you have a question about the invoice, please feel free to call me. Kind regards, [name and phone number]

Second reminder (demand for payment)

Subject: Second reminder: invoice [number]

Dear [name], despite our reminder of [date], we have not yet received payment of invoice [number] ([amount], due on [date]). Could you pay the amount before [date], to [IBAN] with the reference [structured reference]? If there is a problem with the invoice or the payment, please let us know before that date. Without payment or a response, we will then send you a formal notice. Kind regards, [name and phone number]

The formal notice (ingebrekestelling / mise en demeure) is a formal letter with the invoice details, the previous reminders, a final deadline and what happens next. Have the text checked by your accountant or legal adviser.

What does Belgian law say?

• Between businesses, the Act of 2 August 2002 on combating late payment in commercial transactions applies. Unless your terms and conditions say otherwise, interest is due by operation of law and without formal notice from the day after the due date. You are also entitled to fixed compensation of €40 for recovery costs.
• With a consumer, Book XIX of the Code of Economic Law (Wetboek van economisch recht / Code de droit économique) applies. The first reminder is free of charge. You may only charge damages, interest or a penalty clause after a period of at least 14 days following that reminder, and the amounts are capped by law.

Check with your accountant or legal adviser what your terms and conditions say and what you may charge in your situation.

Fewer reminders: invoice quickly and resolve disputes

An invoice that goes out shortly after the work, with the hours and parts the customer saw on their report, raises fewer questions. Read how to go from work order to invoice without retyping.

If the customer disputes an hour or a trip, hold off on further reminders and call them. If they are right, you correct the invoice with a credit note.

An example: the invoice at the property manager’s

A water treatment company replaces the valve of a water softener in an apartment building. The invoice goes to the property manager, with a payment term of thirty days. A week after the due date, the first reminder goes out. There is no reply.

At the second reminder, someone from the office calls. The property manager does have the invoice, but his accounts department cannot allocate it: the name of the building is not on it. The office sends it again, with the building in the subject line. A few days later, the payment arrives with the structured reference. From now on, the name of the building appears on the invoice as a reference.

How it works in Digitalnatie Service Suite

Accounts follow up the outstanding invoices in the invoices screen. You set up the reminders in the automations.

• Overdue invoices: an orange number in the menu counts them. The cards at the top show the amounts to be received and overdue, including VAT, and a status filter isolates the overdue invoices.
• Structured reference: when the invoice is posted, it gets its final number and its structured reference for the payment.
• Recording a payment: with journal, payment date, amount and reference. Once fully paid, the invoice moves to paid, or first to an in-payment status until your accounts have reconciled the payment with your bank statement.
• Reminder before the due date and reminder after the due date: two built-in automations that do a round every day, at 08:00 or at the time you set. In their settings, you choose the mode (off, trial or on), the time, the number of days before or after the due date and the maximum number of emails per round. In trial mode, nothing goes out and the history shows what would have happened.
• Default payment term: set in the company rules, for customers without their own term. Without a default term, their invoices fall due on the invoice date.
• Customer portal: a customer with access sees their invoices there with their payment status, the due date and the payment details. Paying online is not possible there.

Good to know: by default, only your organisation’s administrator manages the automations; for other people, ask Digitalnatie for the permission. No reminder goes out as long as your organisation’s email account is not connected. A custom rule starts from the template for overdue invoices, which cannot be activated as long as the built-in invoice reminders are on. The check that excludes disputed invoices is shown, but is not available: you keep an eye on a disputed invoice yourself.

More about invoicing in Service Suite, and about automating recurring follow-ups.

Frequently asked questions

When should you send a payment reminder?

Shortly after the due date, for example after a week. For large amounts or new customers, a friendly reminder a few days before the due date helps. Follow the same sequence for every customer.

How many reminders do you send before a formal notice?

Two reminders is usual, the second with a phone call and a clear deadline. If the customer still does not pay and does not respond, the formal notice follows.

Can I charge costs for a payment reminder?

Between businesses, unless your terms and conditions say otherwise, interest is due by operation of law from the day after the due date, and you are entitled to fixed compensation of €40 for recovery costs. With a consumer, the first reminder is free of charge, you may only charge damages, interest or a penalty clause at least 14 days after that reminder, and the amounts are capped by law. Check it with your accountant or legal adviser.

Can Service Suite send payment reminders automatically?

Yes, with the built-in automations for reminders before and after the due date. You can run them in trial mode first, without anything going out. By default, your organisation’s administrator sets them up, and they only go out once your organisation’s email account is connected.

What do I do if the customer disputes the invoice?

Hold off on further reminders and call the customer. If they are right, you correct the invoice with a credit note and, if needed, a new invoice. If they are not, explain why and agree on a payment date.