A payment reminder is a written or recorded prompt, by email, WhatsApp, SMS or letter, asking a buyer to pay a specific invoice by a specific date. Good reminders start before the due date, escalate in tone after it, and stop at a set point where a legal notice takes over. They also create a written trail, and a buyer's signed written reply admitting the dues can count as an acknowledgement under Section 18 of the Limitation Act.
How it works in India
Most Indian SMEs send reminders by phone and WhatsApp, irregularly, from the owner's number. A structured schedule is more effective and less awkward:
- 3 days before the due date: friendly note with the invoice and payment link.
- On the due date: payment is due today.
- 7 days after: overdue, please confirm the payment date.
- 15 days after: firm reminder, mention interest and a hold on supplies.
- 30 days after: final reminder, stating that the matter will go for a legal notice.
Record replies. A buyer's email saying "we will clear ₹2,40,000 next week" is evidence of the debt.
Why it matters for getting paid
Many late payments are simply about who chases first: buyers pay the suppliers who follow up. Consistent reminders lower your DSO, surface disputes early, and build the record that a later legal notice relies on. Reminders without an end point, however, train buyers to ignore you. See customer says will pay next week.
How FundRaksha uses it
FundRaksha Collect automates reminder schedules on WhatsApp, email and SMS, with payment links and UPI Autopay or NACH options, for a 1% fee on collections. When the last reminder passes without payment, the invoice can move to FundRaksha Legal for a notice within 24 hours. See payment reminder automation, or book a free consultation.
Worked example (hypothetical)
A Mumbai digital agency raises a ₹2,40,000 invoice on 30-day terms. Reminders go out 3 days before the due date and on the due date. At day 7 after the due date, the client's accounts head emails: "Approved, we will pay in two parts." At day 15, ₹1,20,000 arrives. The day-30 final reminder notes that the balance will go for a legal notice, and the remaining ₹1,20,000 is paid two days later. Through Collect, the fee at 1% of ₹2,40,000 is ₹2,400.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.