Dunning Sequence Template

The sequence

A dunning sequence is the set of pre-written reminders your system sends as an invoice ages. Load these into your accounting tool, set the triggers, and let the early stages run automatically — while keeping the firm end under human control.

Stage 1 - Courtesy (3 days before due):
Subject: Invoice [Invoice Number] due soon
Hi [Customer Name], a quick heads-up that invoice [Invoice Number] for [Amount] is due on [Due Date]. Payment details are on the invoice — thanks!

Stage 2 - First reminder (Day +2):
Subject: Invoice [Invoice Number] now due
Hi [Customer Name], invoice [Invoice Number] for [Amount] is now due. If it's already paid, thank you — otherwise the details are on the attached invoice.

Stage 3 - Second reminder (Day +7):
Subject: Reminder - invoice [Invoice Number] overdue
Hi [Customer Name], invoice [Invoice Number] ([Amount]) is now 7 days overdue. Could you let us know when payment will be made, or reply with any query?

Stage 4 - Firm reminder (Day +14):
Subject: Overdue - invoice [Invoice Number] needs attention
Dear [Customer Name], invoice [Invoice Number] for [Amount] is now 14 days overdue. Please arrange payment, or contact us to discuss, within 3 business days.

Stage 5 - Final notice (Day +21):
Subject: Final notice - invoice [Invoice Number]
Dear [Customer Name], despite reminders, invoice [Invoice Number] for [Amount] remains unpaid. Please pay by [Deadline] or the account may be referred for recovery.

How to use it

The sequence works because tone escalates predictably — courtesy, then reminder, then firmness, then a final notice — so the customer always knows where they stand. Map each stage to a trigger in your accounting software (days before or after due) and let the early, friendly stages run hands-free; they clear the bulk of accounts without anyone lifting a finger. Personalise the merge fields properly so messages never go out with empty brackets, which instantly signals an unattended system and invites the customer to ignore it.

Automate without losing the human

Automation handles volume; judgement handles exceptions. Keep both.

• Automate the early stages — courtesy and first reminders rarely need a human.
• Pause automation on a reply — a query or hardship message should reach a person.
• Keep the final stages human-checked — a final notice carries weight and risk.
• Keep every message truthful — accurate amounts, real deadlines, honest consequences.

This is general information only; collection conduct is regulated and what is reasonable varies.

What happens next

When the sequence ends without payment, a human takes the account into escalation — run your escalation checklist and choose between a formal demand and referral. For the formal step, the free Letter of Demand Generator produces a structured demand quickly. Review the whole sequence periodically: if many accounts reach Stage 5, the answer often lies upstream in tighter terms or credit checks.