"Dunning" is an old word for a modern problem: getting paid for invoices that have gone past due. A dunning process is simply the structured, repeatable way a business follows up on overdue payments — the sequence of reminders that turns "we'll pay soon" into money in the account. Done with a system, it collects more and strains fewer relationships.
What does "dunning" mean?
Dunning is the process of communicating with customers to collect money they owe on overdue invoices. A "dunning notice" or "dunning letter" is one of those reminders. The term is old, but the idea is everyday accounts-receivable work: following up, consistently and politely, until an invoice is paid.
How the dunning process works
A dunning process is a planned sequence of reminders that escalate gently over time. A typical flow:
- Before due date — a friendly heads-up that payment is coming up.
- On the due date — a simple "it's due today" note with a payment link.
- A few days overdue — a polite reminder that the invoice is now past due.
- Further overdue — a firmer message referencing your terms and any late fee.
- Final notice — a clear statement of next steps before escalation.
Each step keeps the same clarity: which invoice, how much, and a one-click way to pay.
Automated vs manual dunning
Manual dunning — chasing each invoice by hand — works until you have more than a handful of customers, then it slips. Automated dunning sends the right message at the right interval on its own, so nothing falls through the cracks and no one has to remember to follow up. Automation also keeps the tone consistent and the timing disciplined, which is exactly what collects.
How to dun without damaging relationships
- Stay polite early. Most late payment is an oversight, not a refusal — assume good faith at first.
- Be specific. Every message should name the invoice, amount, due date, and payment link.
- Escalate on a schedule, not on emotion — consistency reads as professional, not aggressive.
- Make paying trivially easy — a payment link beats "please remit to…" every time.
When dunning is not enough
If a full sequence passes with no response and no dialogue, it is time to escalate — a phone call, a payment plan, pausing further work, or, as a last resort, a formal collections or legal route. A good dunning process makes this rare by catching most late payers early and giving them an easy way to pay.
Frequently asked questions
What is a dunning notice?
A dunning notice is a reminder sent to a customer about an overdue invoice. It states which invoice is unpaid, the amount, and how to pay, and it is usually one step in a larger dunning sequence that escalates over time.
What is the difference between dunning and collections?
Dunning is the routine, in-house process of reminding customers about overdue invoices. Collections usually refers to a later, more formal stage — often involving a dedicated team or an outside agency — once normal reminders have failed.
How many dunning reminders should you send?
There is no fixed number, but a common sequence is four to five messages — a pre-due reminder, a due-date note, and two or three escalating follow-ups — ending with a clear final notice before you escalate further.
Dunning is one piece of getting paid on time — see our guides to writing payment reminder emails, accounts receivable best practices, and reducing days sales outstanding.
FulcrumGrid Collection
Put your dunning on autopilot
Collection sends the right reminder at the right time for every overdue invoice, tracks who has paid, and keeps the tone consistent — so you collect more without chasing by hand.