An outstanding payment email is a written request to a customer's accounts team to pay an invoice that is due or overdue. It needs a clear subject line with the invoice number and amount, the invoice details and due date, the balance after any part payment, payment instructions, a specific pay-by date, and a request to raise any dispute in writing.
Email 1: polite reminder (on or just after the due date)
Subject: Payment due: Invoice [INVOICE NO.] for Rs [AMOUNT] (due [DUE DATE]) Dear [NAME], I hope you are well. This is a reminder that invoice [INVOICE NO.] dated [INVOICE DATE] for Rs [AMOUNT] was due on [DUE DATE]. A copy is attached with the delivery proof. Could you please arrange payment by [DATE] to: [ACCOUNT NAME] | A/c [ACCOUNT NO.] | IFSC [IFSC] | UPI [UPI ID] If payment is already processed, please share the UTR so we can match it. If anything on the invoice needs correction, just reply and we will sort it out. Thank you, [NAME] [DESIGNATION], [YOUR BUSINESS NAME] [PHONE]
Email 2: overdue follow-up (7 to 15 days later)
Subject: Overdue: Rs [TOTAL OVERDUE] outstanding, [NUMBER] invoices ([DAYS] days) Dear [NAME], Following my email of [DATE], the invoices below remain unpaid: [INVOICE NO.] | [DATE] | Rs [AMOUNT] | due [DUE DATE] [INVOICE NO.] | [DATE] | Rs [AMOUNT] | due [DUE DATE] Total outstanding: Rs [TOTAL OVERDUE] The supplies were delivered and accepted on [DATE(S)], and we have not received any query. Please confirm by [DATE] when the payment will be released, and share the payment advice once done. [If MSE supplier: As a registered [micro / small] enterprise (Udyam [UDYAM NO.]), payments to us are governed by the MSMED Act, 2006, which limits the payment period to 45 days from acceptance and provides for interest on delay.] I have copied [NAME OF SENIOR CONTACT] for visibility. Regards, [NAME] [DESIGNATION], [YOUR BUSINESS NAME]
Email 3: final email before legal notice
Subject: Final reminder before legal action: Rs [TOTAL] outstanding since [OLDEST DUE DATE] Dear [NAME / DIRECTOR NAME], Despite our emails of [DATE] and [DATE], Rs [TOTAL] remains unpaid, with the oldest invoice now [DAYS] days overdue. The statement of account is attached. Please pay the full amount by [DATE: 7 DAYS FROM TODAY]. If you need time, send a written payment plan by the same date. If we receive neither, we will hand the matter to our advocate for a legal notice and recovery proceedings, including interest and costs, without further reminder. Regards, [NAME] [DESIGNATION], [YOUR BUSINESS NAME]
How to fill it and common mistakes
- Take figures from your ledger after reconciling part payments, TDS deductions and credit notes.
- Use the accounts payable email the customer gave you, and copy the person who placed the order. In email 3, address a director or owner.
- Change the subject line each time, so each email starts a new thread and is not buried.
- Attach the invoice, delivery challan or e-way bill, and the statement of account.
- Sending from a personal Gmail or WhatsApp-only, which weakens the evidence trail.
- Long emails with several requests. Accounts teams act on one clear ask.
- Not following up on promised dates. Reply on the day a promise is missed.
- Threatening action in email 3 and then waiting weeks. Move to the final demand letter or a legal notice on time.
What happens next
Most overdue invoices are cleared after the first or second email. If the customer goes silent after email 3, send a legal notice: see the legal notice format for payment recovery, or have an advocate send it through FundRaksha Legal. To send this sequence automatically on fixed days, FundRaksha Collect runs email and WhatsApp reminders for a 1% success fee.
Last reviewed: 2026-10-20. Information for Indian businesses; not legal advice.