InvoiceTools

Home/Glossary/Dunning

Dunning

Dunning is the process of sending a series of reminders to collect an overdue invoice, starting polite and getting firmer. A dunning letter is one of those reminders.

Example

Day 1 reminder, day 7 call, day 14 notice with the fee, day 30 final demand.

Also called collections, chasing, or the reminder sequence.

Work out a late fee

What it means in practice

Dunning is the formal word for chasing. A sequence beats a single angry message: a light reminder the day after the due date, a call after a week, a formal notice with the late fee at two weeks, and a final date at thirty days.

The value is in the schedule rather than the wording. Reminders that arrive on predictable dates get invoices paid; reminders that arrive when you are annoyed do not.

Covered in full in the guide to chasing an unpaid invoice.

The six stages between finishing work and being paidWork ends, the invoice is sent, it is opened, it is approved, it enters the client's payment run, and the money clears.WHERE THE WAIT ACTUALLY HAPPENSSix stages, and no day counts here: how long each one takes is yours, not a statistic.1Work endsthe job is done2Invoice senthow long didthis take3Openedby the rightperson, or not4ApprovedPO matched,signed off5In the runtheir paymentday6Clearedthe money landsOnly stages one and two are yours. Most of what gets called a late client happens in three, four and five.You cannot shorten their payment run. You can stop losing days before the invoice has gone out at all.
The wait is not one delay, it is six. Most of them happen before the client has done anything wrong.

Where it shows up on the paperwork

Dunning is a sequence of messages rather than a document: the reminder, the call, the notice with the fee, the final demand. Each one refers back to the same invoice number and amount.

What goes wrong

  • Starting a week late, which makes the first message read as a complaint rather than a nudge.
  • Sending the same message three times. Each step should escalate in a way the client can feel.
  • Threatening an action you will not take. The next threat is then worth nothing.

Common questions

What is a dunning letter?

The formal written notice in the sequence, usually the one that states the overdue amount, the late fee if your terms carry one, and what happens next if the new date passes.

How many reminders should I send?

Four is enough for most jobs: day one, day seven, day fourteen and day thirty. After that it is a decision rather than another message.

Two ways to send the document

Download it and send it yourself, and nothing is stored on our servers. Or send it as a link and stop wondering whether it arrived, was read, or is sitting in a queue because something is missing from it.

The first four documents you send as a tracked link are free with an account. Everything else on InvoiceTools.com stays free. Generators, calculators and downloads need no account; template designs need a free one.