How to set a reminder cadence that works
Not how hard you chase, but when — and why timing is the only thing that moves DSO.
You have a fixed cadence that runs by itself, treats every customer the same way and shortens the time from invoice to payment.
Step by step
- 01
Start on the due date — not on the Friday
The courtesy reminder goes out the same day the payment fails to arrive. No fee, no hard words. Most invoices are forgotten, not refused — and that reminder is the cheapest recovery there is.
- 02
Space the three reminders ten days apart
Day 10, 20 and 30 is a cadence that both complies with the law and keeps the pressure up. A shorter interval carries no fee; a longer one gives the debtor time to prioritise other creditors first.
This is where it goes wrongEvery day's delay in sending is a day's longer payment time — multiplied across the whole sales ledger. That is what costs money, not the tone of the letter.
- 03
Chase the customer, not the document
If the same customer has six overdue invoices, he should receive one approach covering the whole balance. Six letters on the same morning turn a continuing trading partner into an opponent.
- 04
End the cadence with a notice of collection
Without it, the three reminders are simply three letters that have taught the debtor that nothing happens. The notice is what gives the preceding letters their weight.
- 05
Set the cadence up in one place — and let it run
A cadence that depends on someone remembering it lasts until the first busy week. Put it into the system, set the amount thresholds, and let it roll without anyone having to make a decision every time.
This is where it most often goes wrong
Not because anyone is careless, but because the mistakes are easy to make and only surface once it is too late.
You treat customers differently
One customer gets three reminders, another gets none. Then you can neither predict when the money will arrive nor document that the procedure was the same for everyone.
You turn up the tone instead of the tempo
A harsher letter on day 40 works less well than a friendly letter on day 1. Timing moves money; tone moves feelings.
You measure the number of reminders
That figure tells you nothing. Measure DSO — how long it takes from invoice to payment. That is what the cadence is there to push down.