How to Write a Payment Reminder: Deadlines, Stages and Template
Write an effective payment reminder with the right deadline, escalation stages, late-payment interest and fees, including a practical template for SMEs.
An open invoice is annoying - and costs money if you wait too long. The reminder is the usual tool for initiating payments without immediately going to a lawyer. Many small business owners put this off because they are unsure: When is dunning allowed? How many reminder levels? What can be included in the reminder?
This guide explains writing a reminder in a practical way for SMEs: deadlines, stages, wording and typical mistakes. It does not replace legal advice, but rather helps with orientation. Basics of the invoice itself: Write an invoice and Mandatory invoice information 2026.
When can you send a reminder?
The basic rule is: The customer must be in default of payment. This means that the agreed payment deadline has expired and the invoice has not yet been paid.
Payment term and due date
There should be a payment deadline on every invoice - 14 or 30 days after the invoice date are usual. Without an explicit deadline, the statutory regulation often applies in B2B contracts (typically 30 days after the due date and receipt of the invoice, unless otherwise agreed). Check your contracts and standard texts in the PDF template.
Is a reminder always necessary?
For B2B transactions, a reminder is usually a prerequisite before late payment interest or damages can be claimed. Different rules sometimes apply to consumers. In practice, almost every company issues a warning - also as a documented notice and for clean files.
Discount and early reminder
If you quote a discount (e.g. 2% if you pay within 10 days), you will only send a reminder after the discount period has expired - not the day after the invoice is issued. Calculate deadlines using the discount calculator.
Reminder levels: from friendly notice to final reminder
There is no legally specified number of warning levels. There are usually three levels plus optional debt collection or a lawyer.
| stage | sound | Typical deadline after prior reminder |
|---|
| 1. Reminder | friendly, forgot payment? | 7-14 days after due date |
| 2. Reminder | more serious, reminder fee possible | 7-14 days after 1st reminder |
| 3rd reminder / final reminder | last deadline before further steps | 7-14 days after 2nd reminder |
First warning: factual and concise
The first reminder by email can be sufficient if the customer communicates that way. Important: invoice number, amount, original payment deadline and a new deadline (e.g. 7 working days). No drama – many payments are simply overlooked.
Second and third reminders
From the second reminder onwards, the formal pressure increases. Reminder fees and a reference to late payment interest can be mentioned here - if you actually want to calculate or enforce these. The third warning should clearly state what steps will follow (debt collection, legal dunning proceedings), without empty threats.
What must be included in a reminder?
A reminder is not a new invoice document, but a payment request for an existing invoice. Obligation is not the same as Section 14 UStG - but completeness helps with enforcement.
Recommended content
- Your company details and those of the debtor
- Date of reminder
- Reference to invoice number and invoice date
- Outstanding amount (including reminder fees already incurred, if charged)
- New payment deadline with a specific date
- Payment method (bank transfer, reference to bank details from the invoice)
- Note that the invoice has already been issued
Reminder fees
Reminder fees are only enforceable with agreement or legal basis. In B2B, a flat-rate reminder fee can be included in the general terms and conditions or contract; Without an agreement, assertion is difficult. Many SMEs charge a moderate flat rate (e.g. €5-15) from the second reminder onwards - legally dependent on the individual case.
Late payment interest
Statutory default interest applies to B2B debts (base rate of 9 percentage points for companies). You must prove that you are in arrears - the reminder documents this. Interest on arrears is often only charged for larger sums or persistent delays in payment, not for every small amount.
Sample: first reminder (text module)
Reminder for invoice [invoice number]
Ladies and Gentlemen
We have not yet been able to detect any receipt of payment for our invoice number [invoice number] from [date] for [amount] €. The payment deadline was [due date].
Please pay the outstanding amount to our account by [new date] (purpose: invoice number).
If payment has already been made, consider this letter to be irrelevant.
Best regards
[Company]
Adapt the tone and deadline to your customer relationship. Often softer for long-term customers; in the case of repeated delays, earlier, more formally.
Reminder by email, letter or both?
Email is fast and common for many B2B customers. We also recommend a PDF or letter for the file, especially from the second reminder onwards. Important: Send reminder to the billing address or the agreed channel - not to a random email that the customer does not use for payment transactions.
E-invoice and reminder
The reminder is not an e-invoice - it refers to the invoice that has already been issued. If you send invoices as ZUGFeRD or XRechnung, the reminder remains a separate document (email, PDF letter). More about formats: E-Invoicing.
Reminder in the workflow: don't forget, don't escalate too early
Status in the software
Ideally, you can see in the dashboard which invoices are open, overdue or remindered. Without an overview, you either send reminders too late or annoy customers who are just paying. Quotavo shows open items in the Invoices area - so you can identify overdue amounts before they become a liquidity gap.
Dunning process instead of individual cases
Specify internally:
- Days after due date → automatic reminder to yourself or first reminder
- Template for each level (text module, same structure)
- Who warns – often management or accounting, not every employee ad hoc
A fixed rhythm seems more professional than doing nothing for weeks and then three reminders in one day.
Typical mistakes
Reminder without reference to the invoice
“Please pay €500” without a number and date makes it difficult to assign and provide proof of default.
New invoice instead of reminder
A reminder does not replace the original invoice. Duplicate invoicing with a new number for the same service content can confuse accounting and VAT. Correction via credit note or cancellation, not via parallel invoice.
Reminder before due date
Anyone who sends a reminder before the payment deadline has expired appears unprofessional and weakens later claims.
Empty threats
“We will take legal action” without consequence trains customers to ignore reminders. Only announce what you will implement.
More answers: FAQ.
Reminder and quote-to-cash
The clean process starts earlier: clear quote, documented acceptance, correct invoice with payment deadline. Those who work cleanly here are less likely to issue warnings. Reminder is repair – not the normal situation.
For companies with many partial payments (skilled trades, construction projects) see provisional invoice and final invoice.
Frequently asked questions (FAQ)
When can I write the first reminder?
As soon as the payment deadline stated on the invoice has passed and no payment has been received. Without a payment deadline on the invoice, the statutory or contractual deadlines apply - in case of doubt only after the usual 14 or 30 days.
How many reminders are usual?
In practice three levels: friendly reminder, formal reminder with information about fees, final reminder before debt collection or a lawyer. More reminders without escalation are of little use.
Does the reminder have to come by post?
Not necessarily. Email is often sufficient, especially in B2B and when the customer receives invoices this way. A PDF or letter can be useful for documentation.
Can I add reminder fees to the invoice?
Reminder fees do not belong on the original invoice, but are shown in the reminder as an additional claim - if agreed or legally permissible. Without an agreement, enforcement is difficult.
What is the difference between reminders and debt collection?
The reminder comes from you. Collection you hand over the debt to a debt collection company, which will issue a reminder on behalf of you and, if necessary, legally enforce it. Before debt collection, your own dunning levels should be documented.
Does Quotavo help with dunning?
Quotavo focuses on quotes, invoices and open items - you see what is overdue and can create reminders with reference to the invoice number and amount. Automatic dunning stages and debt collection are not the core product; The added value lies in the overview and the clean invoicing process beforehand.
Conclusion
Writing a reminder means: clear reference to the invoice, a realistic new deadline, a graduated tone and documented progress. If you set payment deadlines on every invoice and keep an eye on open items, you will send reminders less often and more successfully. This means liquidity can be planned – without every overdue account becoming a constant source of stress.
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