Dunning letter: formal, factual, escalating

A dunning letter is the formal stage of asking for payment: it states the debt, the due date, the days overdue and the next step. It is a business document, not a threat.

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How it differs from an email

A reminder email is a nudge. A dunning letter is a record: dated, referenced, and often the first document a lawyer or insurer will ask for.

That is why it is factual: amounts, dates, references — no adjectives.

The four stages

Stage 1 (7 days late): reminder with the invoice attached.

Stage 2 (14 days): final reminder, payment date requested.

Stage 3 (30 days): formal notice, consequences stated.

Stage 4 (45+ days): final notice before collection or legal steps.

What each letter must contain

Invoice number, amount, due date, days overdue.

The payment instructions — bank details or a link.

A deadline for the next step, and what that step will be.

What to leave out

Legal claims you are not sure about. If you mention interest or fees, they must come from the contract.

Emotion. «Disappointed» belongs in a personal note, not in a dunning letter.

Frequently asked

Is a dunning letter legally required?

In most jurisdictions no, but it creates a paper trail and often restarts the conversation.

Can it be an email?

Yes, as long as it is dated, referenced and saved. Many companies send both.