{"id":30905,"date":"2025-06-03T08:59:47","date_gmt":"2025-06-03T12:59:47","guid":{"rendered":"https:\/\/www.sage.com\/en-us\/blog\/?p=30905"},"modified":"2025-06-03T08:59:48","modified_gmt":"2025-06-03T12:59:48","slug":"how-to-write-dunning-letter","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-us\/blog\/how-to-write-dunning-letter\/","title":{"rendered":"How to write a dunning letter that gets results"},"content":{"rendered":"
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When an account becomes overdue, one of the most effective tools for following up is a dunning letter<\/strong>. A dunning letter is a formal written reminder sent to a customer requesting payment on an invoice that has gone past due. Unlike the original invoice or payment notice, a dunning letter emphasizes the urgency of resolving the outstanding balance.<\/p>\n\n\n\n

Even when customers are late, your tone matters. A professional, courteous message is more likely to get a response than one that sounds aggressive or overly stern. Below, we explain how to structure dunning letters by aging category\u2014and provide sample templates to get you started.<\/p>\n\n\n\n

Writing a dunning letter by days past due<\/strong><\/h2>\n\n\n\n

Dunning letters are typically sent at regular intervals: 30, 60, 90, and 120 days past due. The tone and content of each letter should reflect how far past due the invoice is, while still remaining respectful and focused on resolution.<\/p>\n\n\n\n

With accounts receivable automation tools<\/a><\/strong> like Sage AR Automation<\/a>, these letters can be generated and sent automatically\u2014freeing up your team to focus on high-priority follow-ups.<\/p>\n\n\n\n

Net 30 days past due<\/strong><\/h3>\n\n\n\n

At this stage, assume the delay may be accidental\u2014perhaps the invoice was missed or misrouted. Keep the tone polite and assume goodwill.<\/p>\n\n\n\n

Sample Letter:<\/strong><\/p>\n\n\n\n

Dear [Customer Name],<\/p>\n\n\n\n

This is a friendly reminder that invoice [Invoice Number], sent on [Invoice Date], is now 30 days past due. Please contact us at your earliest convenience to arrange payment or discuss the status of this balance.<\/p>\n\n\n\n

Thank you,<\/p>\n\n\n\n

[Your Company Name]<\/p>\n\n\n\n

Tip:<\/strong> Follow up with a quick phone call after sending this letter. It\u2019s often the fastest way to resolve minor issues like missing documents or email delivery problems.<\/p>\n\n\n\n

Net 60 days past due<\/strong><\/h3>\n\n\n\n

After 60 days, the tone should shift slightly to reflect increased urgency while remaining professional.<\/p>\n\n\n\n

Sample Letter:<\/strong><\/p>\n\n\n\n

Dear [Customer Name],<\/p>\n\n\n\n

We reached out on [Date of Last Contact] regarding the overdue invoice [Invoice Number]. As of today, this invoice is 60 days past due. Please contact us as soon as possible to arrange payment or discuss a resolution.<\/p>\n\n\n\n

Thank you,<\/p>\n\n\n\n

[Your Company Name]<\/p>\n\n\n\n

 Net 90 Days Past Due<\/strong><\/p>\n\n\n\n

At 90 days, it\u2019s time to reference previous outreach and make the consequences of non-payment clear.<\/p>\n\n\n\n

Sample Letter:<\/strong><\/p>\n\n\n\n

Dear [Customer Name],<\/p>\n\n\n\n

Invoice [Invoice Number] is now 90 days past due. Despite multiple attempts to contact you, we have not yet received payment. We may begin a formal collections process if payment is not received immediately. Please call us today to resolve this matter.<\/p>\n\n\n\n

Thank you,<\/p>\n\n\n\n

[Your Company Name]<\/p>\n\n\n\n

Net 120 days past due<\/strong><\/h3>\n\n\n\n

By 120 days, your business may be considering legal action or reporting the debt. This final notice should be firm and direct.<\/p>\n\n\n\n

Sample Letter:<\/strong><\/p>\n\n\n\n

Dear [Customer Name],<\/p>\n\n\n\n

The outstanding balance for invoice [Invoice Number] is now 120 days overdue. We have made multiple attempts to resolve this matter without success. As a result, we are prepared to take further action, which may include legal proceedings and reporting the delinquency to a credit bureau.<\/p>\n\n\n\n

To avoid escalation, please contact us immediately.<\/p>\n\n\n\n

Thank you,<\/p>\n\n\n\n

[Your Company Name]<\/p>\n\n\n\n

Automate dunning letters to save time<\/strong><\/h2>\n\n\n\n

Manually creating and tracking dunning letters in spreadsheets can lead to inconsistent follow-ups and missed revenue. With Sage AR Automation<\/strong><\/a>, your team can:<\/p>\n\n\n\n