A payment reminder letter is a written request to a customer to pay an invoice that is due or overdue. It should state the invoice number and date, the amount outstanding, the original due date, how to pay and a specific date by which you expect payment, and it should ask the customer to tell you about any dispute.
First reminder (polite)
Use this a few days after the due date. Keep it short and assume the delay is an oversight.
[YOUR BUSINESS NAME] [ADDRESS] | GSTIN: [YOUR GSTIN] [PHONE] | [EMAIL] Date: [DATE] To, [CUSTOMER NAME] [CUSTOMER ADDRESS] Kind attention: [ACCOUNTS CONTACT NAME] Subject: Reminder for payment of invoice no. [INVOICE NO.] dated [INVOICE DATE] Dear [NAME], We hope you are doing well. This is a friendly reminder that the following invoice is now due: Invoice no.: [INVOICE NO.] Invoice date: [INVOICE DATE] Amount: Rs [AMOUNT] Due date: [DUE DATE] Amount received so far: Rs [AMOUNT RECEIVED, OR NIL] Balance due: Rs [BALANCE] We request you to arrange payment by [DATE, e.g. 7 DAYS FROM TODAY] to: Account name: [ACCOUNT NAME] Account no.: [ACCOUNT NO.] | IFSC: [IFSC] | Bank: [BANK, BRANCH] UPI: [UPI ID] A copy of the invoice and delivery proof is attached. If payment has already been made, please share the UTR or cheque details so we can update our records. If there is any issue with the invoice, please let us know in writing by [DATE] so we can resolve it. Thank you for your continued business. Regards, [NAME] [DESIGNATION] [YOUR BUSINESS NAME]
Second reminder (firm)
Use this about two weeks after the first reminder if nothing has been paid or said. It refers to the earlier reminder, which builds your paper trail.
[YOUR BUSINESS NAME] [ADDRESS] | GSTIN: [YOUR GSTIN] Date: [DATE] To, [CUSTOMER NAME] [CUSTOMER ADDRESS] Subject: Second reminder: overdue payment of Rs [TOTAL OVERDUE] Dear [NAME], We wrote to you on [DATE OF FIRST REMINDER] regarding the invoice(s) below. We have not received payment or any objection to date. [INVOICE NO.] | [DATE] | Rs [AMOUNT] | due [DUE DATE] | [DAYS] days overdue [INVOICE NO.] | [DATE] | Rs [AMOUNT] | due [DUE DATE] | [DAYS] days overdue Total overdue: Rs [TOTAL OVERDUE] The goods/services were delivered on [DELIVERY DATE(S)] and accepted without any complaint. Please pay the total overdue amount by [DATE, e.g. 7 DAYS FROM TODAY]. [If you are a micro or small enterprise: We are registered under Udyam (No. [UDYAM NO.]). Under Sections 15 and 16 of the MSMED Act, 2006, payments are due within the agreed period, not exceeding 45 days, failing which compound interest with monthly rests at three times the RBI bank rate becomes payable.] If we do not receive payment or a written response by this date, we will have to pursue the matter further. We would much prefer to settle this between us. Regards, [NAME] [DESIGNATION] [YOUR BUSINESS NAME]
How to fill it
- Take invoice details from your billing records and the customer ledger, and reconcile part payments and credit notes before you write the balance.
- Address it to the person who releases payments, not only the person who placed the order.
- Give one specific pay-by date. "At the earliest" gives the customer nothing to miss.
- Attach the invoice, delivery challan or e-way bill, and the signed GRN or acceptance if you have it.
- Include the MSMED Act paragraph only if you hold Udyam registration as a micro or small enterprise and the buyer is not exempt from it.
Common mistakes
- Threatening legal action in the first reminder. It hardens the customer before you know whether there is a genuine issue.
- Sending reminders only by phone. A call leaves no record; a letter or email does.
- Quoting the wrong balance. One wrong figure gives the customer a reason to stall.
- Waiting months before the first reminder, which signals that late payment is acceptable.
How to send it and what happens next
Email the letter as a PDF from your business address and keep a copy; for larger amounts, also send it by speed post. If the customer pays, send a short thank-you with the receipt. If they raise a dispute, deal with it in writing quickly. If two reminders go unanswered, send the final demand letter and then a legal notice.
To stop chasing by hand, FundRaksha Collect sends scheduled reminders by email and WhatsApp for a 1% success fee on what is paid. If you raise invoices on FundRaksha Book, the first 300 invoices are free.
Last reviewed: 2026-10-20. Information for Indian businesses; not legal advice.