Glossary

What is dunning?

Dunning is the process of reminding customers to pay overdue invoices. Learn the stages, a sample schedule with dates, and how to stay polite and effective.

Updated Nov 5, 2026 · By PayToMe Editorial

Dunning is the process of contacting customers to ask them to pay an overdue invoice. It is usually a series of reminders that start friendly and grow firmer, sent by email, text, letter or phone.

How it works

Most late payments are oversights, not refusals. A good dunning process makes it easy to pay, keeps the tone professional and escalates only when needed.

A typical sequence looks like this:

Before the due date. A short reminder a few days ahead, with the invoice attached.
On the due date. A note that payment is due today, with a payment link.
Shortly after. A polite message that the invoice is overdue and asking if there is a problem.
Follow-up. A firmer message stating any late fee and a new deadline.
Final notice. A clear statement of what happens next, such as pausing work or sending the account for collection.

Your aging report tells you which invoices to chase first. Reminders protect your accounts receivable and reduce the chance an invoice ends up as bad debt.

Keep every message factual. Do not threaten. If you plan to charge a late fee, make sure it was stated on the invoice or contract before the invoice was issued.

Example

A designer sends invoice INV-512 for $2,400.00, due on September 15.

Reminder schedule for INV-512

Date	Action	Tone
Sept 12	Email reminder with invoice	Friendly
Sept 15	Due-today note with payment link	Neutral
Sept 18	“Past due” email, ask if anything is wrong	Polite
Sept 25	Call and email, mention a 1.5% monthly late fee ($36.00)	Firm
Oct 5	Final notice, work paused until paid	Formal

The late fee is $2,400.00 x 0.015 = $36.00. Test other rates with the late fee calculator.

Tips

Send reminders on a schedule you set in advance, not when you feel worried.
Include a way to pay in every message.
Offer a payment plan when a good client is struggling.
Keep a record of every contact.

PayToMe is in public beta, and smart reminders to automate this are in development, with your approval before anything is sent. See smart reminders for status, and use the free invoice generator to create clear invoices today.

Aging report: which invoices are overdue and by how long.
Bad debt: invoices that will not be collected.
Accounts receivable: the total owed to you.
Write-off: removing an uncollectible invoice.

Frequently asked questions

Is dunning the same as debt collection?

No. Dunning is the friendly-to-firm reminder sequence you run yourself. Debt collection usually means handing the account to a collection agency or lawyer, which is a later step.

How often should I send reminders?

A common pattern is one reminder shortly before the due date, then one on the due date, then weekly after it. Adjust to your client and the amount.

What should a dunning email include?

The invoice number, amount, due date, how many days late it is, a payment link or instructions, and a contact for questions. Keep the tone polite and factual.