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Glossary

What is dunning?

Dunning is the process of systematically communicating with customers to collect overdue payments — the escalating sequence of reminders that runs until an invoice is paid.

Updated June 2026Accounts receivable

In short

  • Dunning is the structured follow-up process for collecting overdue invoices.
  • A dunning process is a cadence of reminders that escalates in tone and channel over time.
  • Good dunning is consistent and context-aware — it pauses on disputes and stops when paid.
  • Dunning automation runs the cadence on every account without manual effort.

Dunning, defined

Dunning is the accounts receivable practice of methodically following up with customers who owe overdue payments. The communications themselves are often called dunning letters, dunning emails, or dunning notices.

The point of dunning is consistency: applying a reliable follow-up cadence to every overdue invoice rather than chasing only the accounts someone happens to remember.

How a dunning process works

A dunning process is a defined cadence — a schedule of touchpoints that typically starts with a gentle pre-due or just-overdue reminder and escalates in tone, frequency, and channel (email, then phone or WhatsApp) the longer an invoice ages.

Strong dunning is context-aware: it pauses when a customer raises a promise to pay or a dispute, and it stops immediately once payment is applied.

Dunning automation

Dunning automation runs that cadence for every account automatically, so consistency never depends on memory. The weakness of basic automation is that it keeps sending even after a customer replies — which is why an autonomous agent that reads replies and adapts is the stronger model.

See our guide to dunning done right for how to build a cadence that gets paid without burning relationships.

Frequently asked questions

What is a dunning letter?

A dunning letter is a written notice — email or physical letter — reminding a customer that an invoice is overdue and requesting payment. It is one touchpoint within a broader dunning cadence.

See Welldun work on your ledger

Welldun chases overdue invoices across email, WhatsApp, and voice, and applies incoming cash to the right invoices automatically — so your DSO falls without the manual chase.

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Related terms

DSO · Cash application · Promise to pay · Accounts receivable · Browse the full glossary →