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Escalation Timeline
Invoice Details
Settings & Escalation
Days Overdue
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On Time
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About

Recovering overdue revenue is a delicate balance between maintaining cash flow and preserving client relationships. The Payment Reminder Email Generator automates the dunning process - the systematic pursuit of receivables - by generating context-aware email sequences tailored to the age of the debt.

Unlike static templates, this tool dynamically calculates Late Fees based on overdue duration (using d days late) and injects legally compliant language for final demands. It addresses the psychological escalation required to trigger payment, moving from helpful nudges to firm consequences without emotional bias.

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Formulas

The tool automatically calculates accumulated late fees using the Simple Interest formula for overdue invoices:

{
Total = P + P × r × d30where:P = Principal Amountr = Monthly Interest Rate ( 1.5%)d = Days Overdue

For escalation logic, the urgency score S is derived from the timeline delta:

S(t) { Polite, Firm, Urgent, Legal }

Reference Data

Escalation StageTiming StrategyRecommended ActionLegal/Interest Note
0. Courtesy Pre-Notice3-5 days before Due DateHelpful reminder. Verify invoice receipt.No interest applies. Focus on removing friction.
1. First Notice1-5 days OverduePolite nudge. Assume oversight.Grace period often applies. No late fees usually charged yet.
2. Firm Reminder14-21 days OverdueRequest confirmation of payment date.Add late fees if contract permits (typ. 1.5% per month).
3. Final Demand30-45 days OverdueUltimatum. Threaten service suspension.Cite legal consequences. Invoice sent to collections warning.
4. Legal Escalation60+ days OverdueFormal Notice of Intent.Reference Late Payment Legislation (e.g., UK Late Payment Act).

Frequently Asked Questions

Standard business practice suggests applying late fees after 15 or 30 days overdue, unless your contract states otherwise. A common rate is 1.5% per month (18% APR). Always list this policy on the original invoice.
Yes, but ensure the threats (e.g., 'sending to collections') are genuine. Empty threats damage credibility. The templates use standard language, but for debts exceeding significant amounts ($5k+), consult legal counsel before sending a formal Notice of Intent.
No. All generation happens locally in your browser via JavaScript. No invoice data is sent to any server.
It is a pre-styled CSS code block containing a "Pay Now" button linked to your payment URL (Stripe/PayPal). You can copy-paste this directly into Gmail, Outlook, or Thunderbird to increase conversion rates.