Dunning Sequence Checklist
Design a repeatable dunning sequence so every overdue invoice is chased on the same firm, escalating schedule without anyone having to remember the next step.
What this checklist covers
- Map the stages of your dunning sequence
- Set the timing and tone of each step
- Decide what triggers automation versus a human
- Keep the sequence compliant and accurate
- Review and refine the sequence over time
6 min
Before you start
A dunning sequence is your standard, repeatable chase applied to every overdue invoice. Get the foundations right before you build it.
- Confirm your standard payment terms, so day one of arrears is clearly defined.
- Make sure invoice data — amount, due date, contact — is accurate and accessible.
- Decide which steps can be automated and which need a person.
- Check your messaging will stay accurate and not misleading at every stage.
A sequence built on messy data just automates errors, so clean inputs come first. This is general information, not legal advice.
Map the sequence
Lay out each step with a clear time and tone, escalating in firmness as the debt ages.
- Optional courtesy reminder a few days before the due date.
- Day one of arrears: friendly first reminder with a pay link.
- Around day seven: firmer reminder noting it is now overdue.
- Around day fourteen: a human phone call to confirm a payment date.
- Around day thirty: formal letter of demand with a final deadline.
- After the demand deadline: a final notice, then recovery hand-over.
The Merion tools provide reminder and demand templates you can slot into each step.
Automate and personalise
Blend automation for consistency with human contact where it counts.
- Automate the early reminders so nothing is missed, even on busy weeks.
- Keep the phone call and the formal demand as human steps.
- Pause the automated sequence the moment a dispute or query is raised.
- Personalise tone for key accounts so valued customers are not chased robotically.
Automation should never override a human flag — a customer in dispute must not keep receiving auto-reminders.
Common mistakes
Dunning sequences fail when they are rigid, generic or inaccurate. Avoid these.
- Continuing to fire reminders at a customer who has raised a genuine dispute.
- Letting every step read identically, so escalation carries no weight.
- Bunching reminders so close together they feel like harassment.
- Automating inaccurate balances, which undermines trust and breaches conduct norms.
- Never reviewing the sequence to see what actually gets people paying.
A sequence that escalates clearly, pauses on disputes and is refined over time is what gets invoices paid.
Key takeaways
- Build one repeatable, escalating sequence applied to every overdue invoice.
- Map each step with a clear time and rising firmness.
- Automate early reminders but keep calls and demands human.
- Pause the sequence the instant a genuine dispute is raised.
Frequently asked questions
What is a dunning sequence?
It is a planned series of escalating payment reminders applied consistently to overdue invoices — typically a friendly first nudge, firmer follow-ups, a phone call and a formal demand. The point is that every debt is chased the same reliable way.
Can I fully automate my collections?
Automate the routine reminders, but keep human judgment for phone calls, disputes and formal demands. Automation that keeps chasing a disputed account or quotes a wrong balance causes complaints, so always let a human flag pause the flow.
How far apart should dunning steps be?
Spaced enough to give the customer a genuine chance to pay, but close enough to keep momentum — roughly day one, day seven, day fourteen and day thirty works well. Bunching reminders too tightly can read as harassment.
Work the checklist, then get paid
Use the free Invoice Generator, then let Merion recover anything that goes unpaid — commission-only.