In one line
The sequence of reminders sent to collect an overdue invoice.
Also called collections, chasing, or the reminder sequence.
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.
Example. Day 1 reminder, day 7 call, day 14 notice with the fee, day 30 final demand.
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.
The tools for this
Related terms
- Overdue invoiceAn invoice that has passed its due date without being paid.
- Late feeA charge added to an invoice that is paid after its due date.
- Aging reportA list of unpaid invoices sorted by how long they have been outstanding.
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.