Payment Reminder Template

Free Payment Reminder Template for Car Dealers (1st, 2nd and 3rd Reminder)

Not every customer pays on time. Professional dunning is therefore part of everyday dealer business. Our free payment reminder templates cover all three dunning levels – from a friendly payment reminder to the final notice before legal proceedings. All templates contain the necessary mandatory information and are ready for immediate use.

The Three Dunning Levels at a Glance

1st Reminder: Friendly Payment Reminder

The first reminder is a polite notification. Often the customer has simply forgotten to pay. Tone: friendly and factual. Content: reference to the outstanding invoice with invoice number, date and amount. Set a new payment deadline (e.g., 7 days). No dunning fees at the first level.

2nd Reminder: Firm Reminder

If no payment is received after the first reminder, the tone becomes more assertive. Reference to the first reminder, another deadline (e.g., 7 days). From the second reminder onward, dunning fees may be charged (typical: 2.50 to 5.00 euros) as well as default interest. Notice of possible further action.

3rd Reminder: Final Notice Before Legal Action

The third reminder is the final warning. Clear notice that legal action will be initiated if payment is not received within the set deadline (court dunning proceedings, debt collection). Dunning fees and default interest are charged. Deadline: 7 to 10 days.

Mandatory Information in a Payment Reminder

• Complete sender and recipient details
• Reference to the original invoice (invoice number, date, amount)
• Indication of the dunning level
• Outstanding amount including any dunning fees and default interest
• New payment deadline with a specific date
• Bank details for the transfer
• For the 3rd reminder: announcement of legal action

When and How to Send Reminders?

• First reminder: Approx. 7–14 days after the invoice due date
• Second reminder: Approx. 7–14 days after the first reminder
• Third reminder: Approx. 7–14 days after the second reminder
• Send payment reminders in writing (letter or email with read receipt)
• Document every dunning step with the date for possible legal proceedings

Calculating Default Interest

Default interest may be charged from the point of default:

• Consumers: Base interest rate + 5 percentage points (currently approx. 8.12% p.a.)
• Businesses (B2B): Base interest rate + 9 percentage points (currently approx. 12.12% p.a.)
• Additionally: Flat fee of 40 euros for recovery costs in B2B transactions (§288 para. 5 BGB)

Tips for Professional Dunning

• Stay friendly in the first reminder – most customers will pay immediately
• Document all dunning steps without gaps
• Always set a specific date as the payment deadline, not “within 7 days”
• Before sending a reminder, check whether the payment has already been received
• For persistently overdue customers: In the future, accept only prepayment or cash payment

Automatic Dunning with AutoPult

Our templates help with manual dunning. AutoPult automates the process: outstanding items are monitored, payment reminders are automatically sent and dunning levels are escalated. You maintain an overview of all receivables and never lose track of an outstanding claim.