Payment reminder letter

How do I write a payment reminder to a client who has not paid an invoice?

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A payment reminder is a short letter that tells a client business which invoice is overdue, for how much, and the new date by which you expect payment. It is normally the step before a formal demand notice, and it asks for payment without claiming interest.

Interest is a separate question. Where your agreement with the client sets interest, it follows the agreement. Where the agreement says nothing, section 3(1)(b) of the Interest Act, 1978 allows a court to award interest from the date named in a written notice that interest will be claimed. The reminder below mentions that section only when your terms are silent on interest.

Fill in the form with your invoice details. You see the letter first, then download it as Word to edit or as PDF to print. Download is free against a mobile number.

What you get

Payment reminder letter, as a Word file to edit and a PDF to print

Example with made-up names

Payment reminder

Date: 24 October 2026

From: Kestrel Design Studio, 14 Tulsi Road, Indore, Madhya Pradesh 452001.

To: Orchid Retail Private Limited, Plot 22, Sector 5, Noida, Uttar Pradesh 201301.

Subject: Reminder for payment of invoice KDS/2026/118 dated 2 September 2026

Dear Ms Rina Kapoor,

We are writing about the invoice below. According to our records it was due for payment on 30 September 2026 and the amount shown has not reached us.

Invoice number	Invoice date	Due date	Amount unpaid
KDS/2026/118	2 September 2026	30 September 2026	₹1,85,000

Please pay the amount by 3 November 2026. If you have already paid, please send us the payment details so that we can match the payment to the invoice, and treat this letter as sent in error.

If something about the invoice is unclear or in dispute, please tell us in writing before 3 November 2026, so that we can look into it.

We would like to settle this without a formal notice. If the amount is still unpaid after 3 November 2026, we may send one.

This letter does not claim interest. Section 3(1)(b) of the Interest Act, 1978 allows a court to award interest from the date named in a written notice that interest will be claimed. A notice of that kind is a separate document.

Yours sincerely,

Meera Joshi

Partner

for Kestrel Design Studio

Fill in your own

You, the supplier

Your name, or your business name *

Your address *

The client

Client's business name *

Client's address *

Person to address the letter toLeave it empty to write Dear Sir or Madam.

The overdue invoice

Invoice number *

Invoice date *

Date payment was due *The payment date agreed, or the last day of the agreed credit period.

Amount still unpaid *

What do your terms with the client say about interest? *

The letter and who signs it

Date on the letter *Today, or any day in the next seven days.

Days the client has to pay *A whole number from 1 to 30, counted from the date on the letter.

Write the letter as *

Name of the person who signs *

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BuildWright does documentation, filing and compliance facilitation. This tool works from the rules cited on this page and does not give legal advice. We prepare the documents from your answers; you check, sign and send or file them.

If this is where you are

A client has not paid your invoice and you are not an MSME supplier, or your Udyam came after the order.

Legal notice for an unpaid invoice

A demand notice for one or more unpaid invoices, a statement of account and your last day to sue on each invoice.

Notice for payment of an unpaid invoice
Statement of account
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Common questions

Is a payment reminder a legal notice?

No. The reminder asks for payment by a new date. It does not claim interest and it is not the written notice that section 3(1)(b) of the Interest Act, 1978 describes. A formal demand notice is a separate document.

Can I claim interest on an overdue invoice?

Where your agreement sets interest, claim it under the agreement. Where the agreement says nothing, section 3(1)(b) of the Interest Act, 1978 lets a court allow interest from the date named in a written notice that interest will be claimed. The court decides whether to allow it, and the rate cannot exceed the current rate of interest as the Act defines it. Where your agreement rules out interest, section 3 does not apply.

What should a payment reminder include?

The invoice number, the invoice date, the due date, the amount unpaid, a new date to pay, and how to tell you if the invoice is already paid or in dispute. The letter above carries each of these.

Source: Interest Act, 1978, section 3(1)(b) and section 3(3)(a): interest from the date named in a written notice, and no application where an agreement sets or bars interest. Read 18 October 2026. In force since 19 August 1981. The Supreme Court cited section 3 as current law on 22 September 2026 in North Eastern Electric Power Corporation v. Astra Construction (2026 INSC 1036). The text was read on Indian Kanoon because India Code did not answer; no amendment was found.

Work out the figures firstUse the MSME Payment Calculator. It is free and nothing you enter is stored.The next step, handled for youMSMED Payment Demand Notice: we prepare the papers and take you through sending them.