What is a dunning letter?

A dunning letter is a formal payment reminder sent to customers with overdue invoices. These communications typically follow a progressive sequence from gentle reminders to more urgent notices as the invoice ages. Effective dunning letters maintain professional relationships while encouraging prompt payment.

How do automated dunning letters improve collection rates?

Automated dunning systems deliver timely, consistent payment reminders through optimal channels based on customer preferences and payment patterns. They remove the delays and inconsistencies inherent in manual processes, ensuring no overdue invoice falls through the cracks. Businesses using automated dunning see significant improvements in DSO compared to manual approaches.

Can dunning letters be customized for different customer segments?

Billtrust’s dunning solution allows you to create customized templates and communication sequences for different customer segments. Using AI you can personalize outreach for each client enabling scalability. You can adjust messaging tone, timing, and delivery channels based on factors like customer size, industry, or payment history. This personalized approach maintains strong relationships while maximizing payment recovery rates.