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Letter template

Second Notice Past Due Letter Template

Updated 2026-10-24

A second notice past due letter follows an unanswered first notice. It restates the balance, notes the earlier attempts to reach the customer, and sets a firm deadline for payment or contact. It can mention that credit terms may be placed on hold and that unresolved accounts may be escalated, as long as those statements reflect your actual policy. The tone is direct and businesslike, not hostile.

When to use this template

  • When an invoice is 30 to 60 days past due and the first past due letter got no response.
  • When the customer promised to pay by a date and missed it.
  • When you plan to pause further orders or services and need to tell the customer in writing first.
  • When you want to give one more clear chance to resolve the account before a final notice.
  • When a partial payment came in but the remaining balance is still overdue and the customer has not explained when the rest will follow.

The template

{Your Company Name} {Your Address} {City, State ZIP} {Date} {Customer Contact Name} {Customer Company Name} {Customer Address} {City, State ZIP} Re: SECOND NOTICE - Past due balance of {Balance Due}, account {Account Number} Dear {Customer Contact Name}, This is our second written notice about the past due balance on your account. We wrote to you on {First Notice Date} and have not received payment or a reply. Account summary: Invoice number(s): {Invoice Numbers} Original due date(s): {Due Dates} Days past due: {Days Past Due} Total balance due: {Balance Due} Please pay the full balance of {Balance Due} by {Payment Deadline}. Payment options are listed on the enclosed statement, or you can pay online at {Payment Link}. If you cannot pay the full amount by that date, please call me at {Your Phone Number} before the deadline. We are willing to discuss a written payment plan, but we need to hear from you to do that. Please be aware that under our credit policy, accounts more than {Number} days past due may be placed on credit hold, which means new orders would require payment in advance until the account is current. If we do not receive payment or hear from you by {Payment Deadline}, we will review the account for further collection steps. If you believe this balance is incorrect, please tell us in writing which charges you dispute and why, so we can review them promptly. We value your business and would like to resolve this quickly. Sincerely, {Your Name} {Your Title} {Your Company Name} Enclosure: Account statement

How to customize it

  • Only include the credit hold paragraph if your company actually places past due accounts on hold. If you do not, remove it rather than bluff.
  • List each prior contact, with dates, if there have been several calls or emails. A clear history helps if the account is later referred to a collection agency.
  • If the customer made a partial payment, show the original amount, the payment received, and the remaining balance.
  • Shorten the deadline to 7 days for customers who have already broken a payment promise, or extend it to 14 days for long-term accounts you want to keep.
  • Send to both your contact and a finance or AP manager. A second notice is a reasonable point to go one level higher.
  • Keep the escalation language general in this letter. Save a specific referral date for the final notice, so each letter has a clear purpose and you only state dates you will keep.

Mistakes to avoid

  • Do not say the account 'has been sent to collections' or 'legal action has begun' if neither is true. False statements about status can create liability and damage your credibility.
  • Avoid insulting or personal remarks about the customer's business or management. Keep the letter about the invoice.
  • Do not ignore a dispute the customer raised earlier. If they questioned charges, address that issue directly in this letter.
  • Do not add new fees in the second notice that were not in your original terms.
  • Do not send the second notice only to a generic billing inbox if earlier notices went there and got no reply. Find a named person in finance or ownership so the letter actually gets read.
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Frequently asked questions

When should I send a second past due notice?

Most businesses send it 14 to 30 days after the first past due letter, typically when the invoice is 30 to 60 days overdue. Consistent timing across all customers makes your process easier to defend.

Can I stop shipping to a customer who has a past due balance?

In most B2B relationships you can pause new credit or require prepayment, subject to the terms of any contract you have signed. Tell the customer in writing before you do it.

What comes after a second notice?

If the second notice goes unanswered, send a final notice before collections. That letter states the specific date the account will be referred to a collection agency if it is not resolved.

Should I call the customer as well as sending a second notice?

Yes, a phone call the same day or the day after the letter goes out often gets a faster answer. Keep the call short and factual, ask when payment will be sent, and note the date, the person you spoke with, and what they promised in your account records.

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Prepared by the Ironside Commercial Recovery collections team. General information, not legal advice. Have counsel review letters that reference legal action or statutory requirements.

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