Communication sent regarding an overdue payment is a notification typically dispatched electronically. This message informs a client or customer that a previously issued statement for goods or services remains unpaid beyond the agreed-upon terms. For example, a business might send an automated reminder to a customer whose payment is 30 days late according to the net-30 payment terms.
Such notifications are vital for maintaining healthy cash flow and reducing the risk of bad debt. Historically, these notices were often delivered via postal mail, leading to delays and increased administrative burden. Electronic delivery offers significant advantages, including speed, cost-effectiveness, and improved tracking of communications. These notifications contribute to professional and organized accounts receivable processes.
