Dunning Email Templates and Examples to Use in 2024

Updated: February 12, 2024

Keeping cash flowing is crucial for any business. One important aspect of this is ensuring timely payments from customers. However, unexpected situations can lead to late payments, requiring tactful reminders to encourage prompt action. This is where dunning emails come in.

This article equips you with everything you need to craft effective dunning emails. Learn their purpose, best practices, and the benefits of using templates. Plus, get 5 ready-to-use examples for various scenarios. By the end, you'll be sending professional reminders that encourage prompt payments while fostering positive customer relationships.

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What are Dunning Emails?

Dunning emails are friendly, professional messages sent to customers with outstanding invoices or overdue payments. They aim to remind the customer of their balance and encourage them to pay promptly.

The timing of these dunning emails is crucial. It’s best to send the first email soon after the due date, followed by subsequent emails at increasing intervals and urgency depending on the outstanding amount and customer relationship.

The process typically involves a series of emails, progressing from gentle reminders to firmer notifications about potential consequences of non-payment.

Dunning Email Best Practices and Tips

Best Practices:

1. Personalize: Use the customer’s name and address them directly.

Example: “Dear Sarah Jones, This friendly reminder is about your invoice for…”

2. Be clear: State the amount due, the due date, and the invoice number.

Example: “We haven’t received your payment of $250 for your subscription (Invoice #12345) which was due on January 15th, 2024.”

3. Be professional: Use a polite and respectful tone.

Example: “We understand that sometimes unforeseen circumstances can lead to late payments. However,…”

4. Offer options: Provide multiple ways to make a payment (online, phone, etc.).

Example: “You can easily settle your balance through our secure online portal, by phone at 1-800-555-1234, or by mail to…”

5. Include contact information: Make it easy for the customer to reach you with questions.

Example: “If you have already made the payment or have any questions, please don’t hesitate to contact us at…”

Tips:

1. Segment your audience: Tailor emails based on the customer’s history and relationship.

Example: Send shorter, gentle reminders to loyal customers with a good payment history. For customers with chronic late payments, use a firmer tone and emphasize potential consequences.

2. Use clear subject lines: Be upfront about the purpose of the email.

Example: “Friendly Reminder: Payment Due for Invoice #12345” or “Important: Your Payment for Invoice #56789 is Overdue”

3. Avoid sounding aggressive or threatening.

Example: Focus on the consequences of inaction (“Late fees may apply”) instead of using forceful language (“You will be reported to collections”).

4. Offer incentives for prompt payment (discounts, etc.).

Example: “Settle your overdue balance by [date] and receive a 10% discount!”

5. Track results and adjust your approach as needed.

Example: Analyze which email formats and tones resonate best with your audience and adapt your strategy accordingly.

Dunning Email Templates

Subject: Gentle reminder: Payment due for [Invoice Number]

Dear [Customer Name],

This email is a friendly reminder that your invoice for [Amount] for [Service/Product] is due on [Date].

We haven’t received your payment yet. To avoid any late fees, please settle the outstanding balance by [Date].

You can make a payment easily through our website: [Link]

Alternatively, you can reply to this email to discuss other payment options.

Thank you for your continued business.

Sincerely,

The [Company Name] Team

Subject: Important: Your payment for [Invoice Number] is overdue

Dear [Customer Name],

We’re writing to follow up on your invoice for [Amount] for [Service/Product], which is now overdue.

The payment was due on [Date] and we haven’t received it yet. Late payments may incur late fees according to our terms of service.

To avoid further delay, please settle the outstanding balance by [Date]. You can make a payment:

Online: [Link]
Phone: [Phone Number]
Mail: [Address]

If you have already made the payment, please disregard this email. If you’re facing any difficulties with payment, please reply to this email or call us at [Phone Number] to discuss alternative arrangements.

Thank you for your prompt attention to this matter.

Sincerely,

The [Company Name] Team

Subject: Urgent: Final notice regarding your outstanding payment

Dear [Customer Name],

This is a final reminder about your outstanding invoice for [Amount] for [Service/Product], which is now significantly overdue.

Despite previous reminders, we haven’t received your payment. Late fees have already been applied, and further action may be taken if the balance remains unpaid.

To avoid service interruption or collection proceedings, please settle the outstanding balance immediately. You can make a payment through:

Online: [Link]
Phone: [Phone Number]
Mail: [Address]

If you have already made the payment, please disregard this email. If you’re facing financial hardship, please contact us immediately at [Phone Number] to discuss a payment plan.

Thank you for your urgent attention to this matter.

Sincerely,

The [Company Name] Team

Dear [Customer Name],

We understand that sometimes unforeseen circumstances can lead to late payments. We value your business and want to offer a solution to settle your outstanding invoice for [Amount] for [Service/Product], which is currently overdue.

As a gesture of goodwill, we’d like to offer you a [Discount Percentage]% discount if you settle the entire balance by [Date]. This will reduce your payment to [Discounted Amount].

Take advantage of this opportunity to bring your account current and continue enjoying our [Service/Product] without disruption. You can make a discounted payment directly through:

Online: [Link] (discount automatically applied)
Phone: [Phone Number] (mention discount code)

If you already made the payment before receiving this offer, please ignore this email. If you’re facing financial hardship, please contact us immediately at [Phone Number] to discuss a payment plan.

Thank you for considering our offer and taking action to resolve this matter.

Sincerely,

The [Company Name] Team

Subject: Urgent: Your account is at risk of suspension

Dear [Customer Name],

This is a critical notification regarding your account with [Company Name]. Your outstanding invoice for [Amount] for [Service/Product] remains unpaid, despite previous reminders.

As per our terms of service, failure to settle your outstanding balance by [Date] will result in the suspension of your account and access to [Service/Product]. This will remain in effect until the balance is paid in full, including any late fees.

To avoid service interruption, please make an immediate payment through:

Online: [Link]
Phone: [Phone Number]
Mail: [Address]

If you have already made the payment, please disregard this email. If you’re facing financial hardship, please contact us immediately at [Phone Number] to discuss a payment plan.

We encourage you to take immediate action to avoid service suspension and any disruptions to your business.

Sincerely,

The [Company Name] Team

Dunning Email Examples

Example 1: Gentle Reminder

Subject: Gentle reminder: Payment due for Invoice #12345

Dear John Smith,

This is a friendly reminder that your invoice for $500 for your website hosting renewal is due on February 15th, 2024. To avoid any interruption in your service, please settle the outstanding balance by then.

You can easily make a payment through our secure online portal: [Link].

Thank you for your continued business!

Sincerely,

The WebHoster Team

Example 2: Payment Overdue

Subject: Important: Your payment for Invoice #56789 is overdue

Dear Alice Johnson,

We’re reaching out to follow up on your invoice for $2,000 for your marketing campaign, which is now 10 days overdue. The original due date was January 31st, 2024.

Please note that late payments incur a late fee of 5% per month. To avoid further charges, please settle the outstanding balance by February 10th, 2024.

You can make a payment online, by phone, or by mail:

Online: [Link]
Phone: 1-800-555-1234
Mail: 123 Main Street, Anytown, CA 12345

If you have already made the payment, please disregard this email. If you’re facing any difficulties, please reply to this email or call us at the number above to discuss alternative arrangements.

Thank you for your prompt attention to this matter.

Sincerely,

The Marketing Agency Team

Example 3: Final Notice

Dear David Lee,

To avoid any further consequences, please settle the outstanding balance of $1,575 (including late fees) immediately. You can make a payment through:

Online: [Link]
Phone: 1-888-456-7890
Mail: 456 Elm Street, Anytown, NY 10001

If you have already made the payment, please disregard this email. If you’re facing financial hardship, please contact us immediately at 1-888-456-7890 to discuss a payment plan.

Please understand that we value your business and prefer to resolve this matter amicably. However, if we don’t receive your payment by [Date], we will be forced to take further action, which may include:

Reporting the delinquency to credit bureaus.
Hiring a collection agency.
Suspending your access to our services.
We urge you to take immediate action to avoid any further complications.

Sincerely,

The Design Studio Team

Example 4: Offer for Incentive Payment

Subject: Special offer: Settle your overdue invoice for Invoice #3210 and receive a 10% discount!

Dear Sarah Jones,

We understand that unforeseen circumstances can sometimes lead to late payments. We value your business and want to offer a solution to settle your outstanding invoice for $300 for your software subscription, which is currently overdue.

As a gesture of goodwill, we’d like to offer you a 10% discount if you settle the entire balance by [Date]. This will reduce your payment to $270.

Take advantage of this opportunity to bring your account current and continue enjoying our software without interruption. You can make a discounted payment directly through:

Online: [Link] (discount automatically applied)
Phone: 1-234-567-8900 (mention discount code)

If you already made the payment before receiving this offer, please ignore this email. If you’re facing financial hardship, please contact us immediately at 1-234-567-8900 to discuss a payment plan.

Thank you for considering our offer and taking action to resolve this matter.

Sincerely,

The Software Solutions Team

Example 5: Account Suspension Warning

Subject: Urgent: Your account is at risk of suspension (Invoice #74123)

Dear Michael Brown,

This is a critical notification regarding your account with [Company Name]. Your outstanding invoice for $1,000 for your cloud storage subscription remains unpaid, despite multiple reminders.

As per our terms of service, failure to settle your outstanding balance by [Date] will result in the suspension of your account and access to all your data. This will remain in effect until the balance is paid in full, including any late fees.

To avoid service interruption and potential data loss, please make an immediate payment through:

Online: [Link]
Phone: 1-555-CLOUD-999
Mail: 789 Cloud Avenue, Anytown, TX 77777

If you have already made the payment, please disregard this email. If you’re facing financial hardship, please contact us immediately at 1-555-CLOUD-999 to discuss a payment plan.

We strongly urge you to take immediate action to avoid account suspension and secure your valuable data.

Sincerely,

The Cloud Storage Team

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Subject: Gentle reminder: Payment due for [Invoice Number] <br> <br>Dear [Customer Name], <br> <br>This email is a friendly reminder that your invoice for [Amount] for [Service/Product] is due on [Date]. <br> <br>We haven't received your payment yet. To avoid any late fees, please settle the outstanding balance by [Date]. <br> <br>You can make a payment easily through our website: [Link] <br> <br>Alternatively, you can reply to this email to discuss other payment options. <br> <br>Thank you for your continued business. <br> <br>Sincerely, <br> <br>The [Company Name] Team
Subject: Important: Your payment for [Invoice Number] is overdue <br> <br>Dear [Customer Name], <br> <br>We're writing to follow up on your invoice for [Amount] for [Service/Product], which is now overdue. <br> <br>The payment was due on [Date] and we haven't received it yet. Late payments may incur late fees according to our terms of service. <br> <br>To avoid further delay, please settle the outstanding balance by [Date]. You can make a payment: <br> <br>Online: [Link] <br>Phone: [Phone Number] <br>Mail: [Address] <br> <br>If you have already made the payment, please disregard this email. If you're facing any difficulties with payment, please reply to this email or call us at [Phone Number] to discuss alternative arrangements. <br> <br>Thank you for your prompt attention to this matter. <br> <br>Sincerely, <br> <br>The [Company Name] Team
Subject: Urgent: Final notice regarding your outstanding payment <br> <br>Dear [Customer Name], <br> <br>This is a final reminder about your outstanding invoice for [Amount] for [Service/Product], which is now significantly overdue. <br> <br>Despite previous reminders, we haven't received your payment. Late fees have already been applied, and further action may be taken if the balance remains unpaid. <br> <br>To avoid service interruption or collection proceedings, please settle the outstanding balance immediately. You can make a payment through: <br> <br>Online: [Link] <br>Phone: [Phone Number] <br>Mail: [Address] <br> <br>If you have already made the payment, please disregard this email. If you're facing financial hardship, please contact us immediately at [Phone Number] to discuss a payment plan. <br> <br>Thank you for your urgent attention to this matter. <br> <br>Sincerely, <br> <br>The [Company Name] Team
Dear [Customer Name], <br> <br>We understand that sometimes unforeseen circumstances can lead to late payments. We value your business and want to offer a solution to settle your outstanding invoice for [Amount] for [Service/Product], which is currently overdue. <br> <br>As a gesture of goodwill, we'd like to offer you a [Discount Percentage]% discount if you settle the entire balance by [Date]. This will reduce your payment to [Discounted Amount]. <br> <br>Take advantage of this opportunity to bring your account current and continue enjoying our [Service/Product] without disruption. You can make a discounted payment directly through: <br> <br>Online: [Link] (discount automatically applied) <br>Phone: [Phone Number] (mention discount code) <br> <br>If you already made the payment before receiving this offer, please ignore this email. If you're facing financial hardship, please contact us immediately at [Phone Number] to discuss a payment plan. <br> <br>Thank you for considering our offer and taking action to resolve this matter. <br> <br>Sincerely, <br> <br>The [Company Name] Team
Subject: Urgent: Your account is at risk of suspension <br> <br>Dear [Customer Name], <br> <br>This is a critical notification regarding your account with [Company Name]. Your outstanding invoice for [Amount] for [Service/Product] remains unpaid, despite previous reminders. <br> <br>As per our terms of service, failure to settle your outstanding balance by [Date] will result in the suspension of your account and access to [Service/Product]. This will remain in effect until the balance is paid in full, including any late fees. <br> <br>To avoid service interruption, please make an immediate payment through: <br> <br>Online: [Link] <br>Phone: [Phone Number] <br>Mail: [Address] <br> <br>If you have already made the payment, please disregard this email. If you're facing financial hardship, please contact us immediately at [Phone Number] to discuss a payment plan. <br> <br>We encourage you to take immediate action to avoid service suspension and any disruptions to your business. <br> <br>Sincerely, <br> <br>The [Company Name] Team

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