Payment reminders

Payment reminders in English: templates for first, second and final notice

German dunning escalates in three stages and English has no single word for it. Use payment reminder (friendly), second reminder (overdue) and final notice (last deadline). Avoid the literal dunning letter — to a British or US client it reads as debt-collection language.

The right term for each stage

GermanEnglishTone
Zahlungserinnerungpayment reminderFriendly, assumes an oversight
1. Mahnungfirst reminder / overdue noticeFactual, sets a new deadline
2. Mahnungsecond reminderInterest is quantified for the first time
Letzte Mahnungfinal notice / final demandAnnounces concrete next steps
Verzugszinsendefault interest / late-payment interestBoth are standard

Two more that come up constantly: "outstanding" for unpaid, and "to settle an invoice" for paying it. The 40-euro flat fee is called "late-payment compensation" in EU wording.

The three templates

Replace the bracketed placeholders. These are deliberately short — in English-language business correspondence a brief, polite email works better than a long letter.

Stage 1: Payment reminder
Subject: Payment reminder — invoice [number]

Dear [name],

I hope you are well. This is a friendly reminder that invoice [number] of [invoice date], for [amount], was due on [due date] and is still showing as unpaid on our side.

If the payment is already on its way, please disregard this message. Otherwise, I would be grateful if you could arrange the transfer to:

Account holder: [name]
IBAN: [IBAN]
BIC: [BIC]
Reference: [invoice number]

Please let me know if anything about the invoice is unclear.

Kind regards,
[your name]
Stage 2: Second reminder
Subject: Second reminder — invoice [number], now overdue

Dear [name],

Despite our reminder of [date], invoice [number] of [invoice date] for [amount] remains unpaid. The payment is now [x] days overdue.

I would ask you to settle the outstanding amount by [new date]. Under our terms and the applicable statutory rules, default interest of [rate] % per annum applies from [date default began].

Account holder: [name]
IBAN: [IBAN]
BIC: [BIC]
Reference: [invoice number]

If there is a problem with this invoice, please contact me directly so we can resolve it.

Kind regards,
[your name]
Stage 3: Final notice
Subject: Final notice before further action — invoice [number]

Dear [name],

Invoice [number] of [invoice date] for [amount] is still outstanding despite two reminders, most recently on [date].

Outstanding amount:        [amount]
Default interest ([x] days):  [interest]
Late-payment compensation:  [fee]
Total now due:             [total]

This is a final notice. Please transfer the total amount by [date]. If we have not received payment by then, we will pass the matter to a collections agency / take legal steps to recover it, and any further costs will be added to your account.

Kind regards,
[your name]

For the rate in stage two: under German law in a pure B2B transaction it is currently 10,52 % per year, plus the 40 € flat fee. The derivation and a worked example are in calculating default interest.

What changes with a client abroad

Inside the EU, the Late Payment Directive (2011/7/EU) sets a floor for business transactions: at least eight percentage points above the reference rate, plus a flat fee of at least 40 euros. Germany’s 9 points sit above that — the directive is the floor, not the ceiling.

Three things matter more in practice than the rate. Name the applicable law and jurisdiction explicitly in your quote or terms — enforcement gets expensive without it. State the currency in every reminder, not just on the invoice. And allow a few banking days for transfers from outside the EU before escalating: a reminder that overtakes a payment already in flight costs more goodwill than it recovers.

Last updated 28 August 2026. This article is general information and does not replace legal advice — with cross-border claims in particular, the applicable law is worth checking.

Frequently asked questions

What is "Mahnung" in English?
There is no single word. Use "payment reminder" for the friendly first stage, "second reminder" or "overdue notice" for the second, and "final notice" or "final demand" for the last. "Dunning letter" is the literal equivalent but reads as collections language — wrong for a first contact.
How do I write a second reminder?
Reference the first reminder and its date, state the overdue amount and how many days it is late, set a new deadline, and put a concrete number on the default interest for the first time. Keep the tone factual rather than threatening — the escalation comes from the facts.
Is a "Zahlungserinnerung" different from a "Mahnung"?
A "Zahlungserinnerung" is exactly the payment reminder — the friendly stage before formal dunning. Under German law the distinction carries no weight: both trigger default once they demand payment after the due date.
Does German law apply to foreign clients?
Not automatically. Within the EU, the Late Payment Directive (2011/7/EU) provides a similar floor — at least 8 percentage points above the reference rate and a minimum 40-euro flat fee in business dealings. Which law actually governs depends on what you agreed, which is why your terms or quote should name the applicable law and jurisdiction.
How many reminders must I send?
Under German law, one is enough, foreign client or not. The three stages are convention, not statute. They are still worth using internationally, where late payment is more often a process problem than an unwillingness to pay.

Reminders in your client's language

Billy sends reminders and dunning notices automatically — in German or English, on your schedule.