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How to Write a Letter for Invoice Payment

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The GoCardless content team comprises a group of subject-matter experts in multiple fields from across GoCardless. The authors and reviewers work in the sales, marketing, legal, and finance departments. All have in-depth knowledge and experience in various aspects of payment scheme technology and the operating rules applicable to each. The team holds expertise in the well-established payment schemes such as UK Direct Debit, the European SEPA scheme, and the US ACH scheme, as well as in schemes operating in Scandinavia, Australia, and New Zealand. See full bio

Last editedJan 20233 min read

Getting paid on time is essential for cash flow, particularly for small businesses without a cushion to fall back on. This is why it’s well worth your time to set up a streamlined invoicing system. Use clear communication to set your expectations for payment and improve the client-business relationship. Here’s how to write a letter for invoice payment that gets results.

What is an invoice letter for payment?

An invoice letter is written in a standard business letter format and sent alongside your invoice. It serves as a cover letter for the client showing all payment details they might need. While you can send an invoice on its own, including a request for invoice payment letter serves two purposes. It adds a more personal touch while clarifying your payment details.

When should you send an invoice letter for payment?

As with all aspects of the invoicing cycle, timing is important when it comes to your invoice letters. Here are a few situations where it makes sense to send your invoice letter for payment:

You’re providing payment details at the time of purchase.
You’re requesting advance payment from the client for a large order.
You’re requesting an installment payment during an ongoing project.
You’re reminding the client that payment is past due.

In most cases, the letter is sent along with the invoice at the time of purchase. However, this can be adjusted for larger orders or ongoing services as needed.

What should you include in a letter for invoice payment?

In many ways, a letter for invoice payment follows the same format as any other business letter. You can view professional templates to get a feel for standard formatting. Here are the general elements that should be incorporated into your letter:

Today’s date
Client’s contact information
Your contact information
Greeting with client’s name
Brief description of services rendered and price
Your payment details
Payment due date
Terms and conditions including late fees
Contact name for payment (if different from your own)
Relevant attachments (usually the invoice itself)

How to write an invoice letter for payment

Let’s break down each of these elements in greater detail. Here’s how to write an invoice letter for payment in a few simple steps.

Step 1: Find a professional template. This can be as simple as the standard business letter template in MS Office or your choice of word processing software. Alternatively, you can create your own custom template using a new blank document and save it.

Step 2: Type in your address using the standard format, with text aligned to the left.

Your name

Business name

Street Address

City State Zip Code

Step 3: Add the correct date using the standard format of month, day, year. For example, you could write February 15, 2022. If you’re sending the letter at the same time as the invoice, use the invoice’s date.

Step 4: Type in the recipient’s address using the same standard format. It’s always best to find a specific name to send your letter to when possible. If you’re submitting your invoice letter to a company’s accounts payable department, email ahead of time to ask for a contact name and address.

Step 5: Address the letter to your contact. You’ll use the same individual contact name as above. Use a personal title and professional salutation. In business letters, you use a colon after the name rather than a comma. This might look like:

Dear John Smith:

Dear Mr. Smith:

Dear John:

Use your best judgment here depending on how well you know the contact person.

Step 6: Write the main letter. Start with a friendly opening and then briefly list the services you’ve provided and that you’ve attached an invoice. Include the invoice number and project details using polite, clear wording. This is the space to remind the client about your payment terms and the methods that you accept. If you charge any late fees, be sure to list these clearly at the bottom of the letter body. Finally, don’t forget to include a contact number and email address where the client can reach you with any questions regarding payment.

Step 7: Conclude the letter with a closing line as well as your name and signature. List any attachments below the closing line so that the client knows that the invoice is attached.

How to make invoicing more efficient

Sending an invoice letter is a great way to capture your client’s attention and encourage timely payment. It’s also worth automating your invoicing process to collect payments directly from the customer’s bank account. GoCardless offers a direct debit solution that puts your business in full control over incoming payments, negating the need for lengthy cover letters. Reduce the time spent chasing up on late payments while improving cash flow. You’ll save time, money, and stress. GoCardless also integrates with over 300 partners, including top invoicing software like Xero, to ensure full visibility over all your incoming payments.

We can help

GoCardless is a global payments solution that helps you automate payment collection, cutting down on the amount of financial admin your team needs to deal with. Find out how GoCardless can help you with one-off or recurring payments.