Getting paid
Dunning
Dunning is the process of systematically communicating with customers to collect overdue payments, usually through a sequence of escalating reminders.
What dunning is
Dunning is the structured follow-up that happens after an invoice goes past due. Rather than chasing payments at random, a dunning process sends reminders on a schedule — a gentle nudge first, then firmer messages — until the invoice is paid or escalated.
A "dunning letter" or "dunning email" is one message in that sequence. Subscription and SaaS businesses also use dunning to recover failed card payments.
Dunning best practices
Effective dunning is consistent, polite, and easy to act on: remind the customer as soon as the due date passes, restate the amount and any late fee, and include a one-click way to pay. Escalate the tone gradually across the sequence.
Automating dunning — so reminders go out on their own at set intervals — is the single biggest time-saver, because it removes the awkward, easy-to-postpone task of chasing payments by hand.
Example: An invoice goes unpaid past its due date. A dunning sequence sends a friendly reminder on day 1, a firmer note on day 7, and a final notice with the late fee on day 14 — each with a pay link.
FAQs
Frequently asked questions
What is a dunning letter?
A dunning letter is a message sent to a customer to remind them of an overdue payment. It’s typically one step in a sequence of increasingly firm reminders.
How do I automate dunning?
Use invoicing software that sends automatic payment reminders at set intervals after the due date, each with a payment link, so overdue invoices follow up themselves.
Related terms
Past-due invoice
A past-due invoice is an invoice that has not been paid by its due date, making the balance overdue.
Payment terms
Payment terms are the conditions on an invoice that state when payment is due and how it should be made — for example "Net 30" or "Due on receipt."
Invoice payment
An invoice payment is the funds a buyer sends to a seller to settle the amount owed on an invoice, by or before its due date.
Put it into practice
WaffleInvoice lets you create branded invoices, set payment terms, collect payments online, and automate reminders — free for unlimited invoices.
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