A demand letter to pay is a formal notification requesting payment for an outstanding debt. It serves as a crucial first step in the debt recovery process, informing the debtor of the amount owed, the reason for the debt, and the consequences of non-payment. A well-crafted demand letter can often resolve the issue without resorting to legal action, saving both time and money.
The key to an effective demand letter lies in its clarity, professionalism, and assertiveness. It should clearly state the amount owed, provide a detailed explanation of the debt, and specify a deadline for payment. It’s also important to maintain a professional tone, avoiding accusatory or threatening language. Providing supporting documentation, such as invoices or contracts, further strengthens the letter’s credibility.
18 Demand Letter to Pay Samples
Below are 18 sample demand letters, covering various situations. Remember to adapt these templates to your specific circumstances and consult with legal counsel if needed.
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Sample 1: General Invoice Payment
[Your Company Letterhead]
[Date][Debtor Name]
[Debtor Address]RE: Demand for Payment – Invoice [Invoice Number]
Dear [Debtor Name],
This letter serves as a formal demand for payment of invoice [Invoice Number] in the amount of $[Amount], which is currently overdue. The invoice was issued on [Date of Invoice] for [Description of Goods/Services].
Please remit payment in full within [Number] days of the date of this letter. Payment can be made via [Payment Methods Accepted].
If payment is not received by [Date], we will be forced to pursue further action, including but not limited to legal proceedings to recover the debt and associated costs.
Sincerely,
[Your Name/Company Name] -
Sample 2: Overdue Rent
[Your Name/Landlord Letterhead]
[Date][Tenant Name]
[Tenant Address]RE: Demand for Overdue Rent
Dear [Tenant Name],
This letter is to inform you that your rent payment for the month of [Month], in the amount of $[Amount], is now overdue. Your rent was due on [Due Date] and remains unpaid.
Please remit the full amount of $[Amount] within [Number] days of the date of this letter to avoid further action. You can make the payment via [Payment Methods Accepted].
Failure to pay the overdue rent within the specified timeframe may result in late fees, eviction proceedings, and further legal action to recover the outstanding debt.
Sincerely,
[Your Name/Landlord Name] -
Sample 3: Unpaid Loan
[Your Name/Lender Letterhead]
[Date][Borrower Name]
[Borrower Address]RE: Demand for Payment – Loan Account [Account Number]
Dear [Borrower Name],
This letter serves as a formal demand for the outstanding balance on your loan account [Account Number], which currently totals $[Amount]. This amount includes principal, interest, and any applicable late fees as outlined in our loan agreement dated [Date of Loan Agreement].
We demand full payment of $[Amount] within [Number] days from the date of this letter. You can make the payment via [Payment Methods Accepted]. Please reference your loan account number when making the payment.
If we do not receive full payment by [Date], we will be forced to take further action to recover the debt, including but not limited to reporting the delinquency to credit bureaus and initiating legal proceedings.
Sincerely,
[Your Name/Lender Name] -
Sample 4: Services Rendered – Unpaid Invoice
[Your Company Letterhead]
[Date][Client Name]
[Client Address]RE: Demand for Payment – Services Rendered
Dear [Client Name],
This letter is a formal request for payment of invoice [Invoice Number] amounting to $[Amount] for services rendered as per our agreement dated [Date of Agreement]. The services provided include [Brief Description of Services], which were completed on [Date of Completion].
Despite several reminders, the invoice remains unpaid. We request that you remit the full payment of $[Amount] within [Number] days from the date of this letter. You can make the payment via [Payment Methods Accepted].
If payment is not received by the specified date, we will have no option but to pursue legal remedies to recover the outstanding amount.
Sincerely,
[Your Name/Company Name] -
Sample 5: Payment for Goods Delivered
[Your Company Letterhead]
[Date][Client Name]
[Client Address]RE: Demand for Payment – Goods Delivered (Order #[Order Number])
Dear [Client Name],
This letter serves as a formal demand for payment for goods delivered under order number [Order Number], which was placed on [Date of Order]. The total amount due for the delivered goods is $[Amount], as detailed in invoice [Invoice Number].
We request that you make the full payment of $[Amount] within [Number] days of receiving this letter. Payment can be made through [Payment Methods Accepted].
Please be aware that if we do not receive your payment by [Date], we will be forced to consider further action to recover the debt, including legal action.
Sincerely,
[Your Name/Company Name] -
Sample 6: Demand for Payment – Breach of Contract
[Your Company Letterhead]
[Date][Opposing Party Name]
[Opposing Party Address]RE: Demand for Payment – Breach of Contract [Contract Number]
Dear [Opposing Party Name],
This letter serves as a formal demand for payment due to your breach of contract [Contract Number], dated [Date of Contract]. Specifically, you have breached the contract by [Briefly Describe Breach]. As a result of this breach, we have incurred damages totaling $[Amount].
We demand that you remit the full payment of $[Amount] to compensate for the damages caused by your breach. Payment must be received within [Number] days from the date of this letter via [Payment Methods Accepted].
Failure to comply with this demand will result in further legal action, including but not limited to filing a lawsuit to enforce the contract and recover damages.
Sincerely,
[Your Name/Company Name] -
Sample 7: Unpaid Medical Bill
[Your Company/Hospital Letterhead]
[Date][Patient Name]
[Patient Address]RE: Demand for Payment – Unpaid Medical Bill (Account #[Account Number])
Dear [Patient Name],
This letter is a formal demand for payment of your outstanding medical bill with account number [Account Number]. The total amount due is $[Amount] for services rendered on [Date of Service]. This amount remains unpaid despite previous statements and reminders.
We require full payment of $[Amount] within [Number] days of the date of this letter. We accept payments through [Payment Methods Accepted].
Failure to remit payment within the allotted time may result in further collection efforts, including referral to a collection agency, which could negatively impact your credit score.
Sincerely,
[Your Name/Hospital Name] -
Sample 8: Professional Services – Unpaid Consulting Fee
[Your Company Letterhead]
[Date][Client Name]
[Client Address]RE: Demand for Payment – Consulting Services
Dear [Client Name],
This letter is a formal demand for payment of our consulting fees, as outlined in our agreement dated [Date of Agreement]. Invoice [Invoice Number] for $[Amount] remains outstanding for services provided between [Start Date] and [End Date], including [Brief Description of Services].
We request immediate payment of the outstanding amount of $[Amount]. Please remit payment within [Number] days from the date of this letter via [Payment Methods Accepted].
If payment is not received by the specified deadline, we will be forced to pursue legal action to recover the debt and associated costs.
Sincerely,
[Your Name/Company Name] -
Sample 9: Overdue Child Support
[Your Name/Attorney Letterhead]
[Date][Opposing Party Name]
[Opposing Party Address]RE: Demand for Payment – Overdue Child Support
Dear [Opposing Party Name],
Please be advised that this letter serves as a formal demand for payment of overdue child support obligations. According to the court order dated [Date of Court Order], you are obligated to pay $[Amount] per month for child support. As of today, you are $[Total Amount Owed] in arrears.
We demand immediate payment of the full amount of $[Total Amount Owed] within [Number] days. Payment should be made as specified in the court order.
Failure to comply with this demand will result in further legal action, including but not limited to filing a motion for contempt of court, wage garnishment, and other enforcement remedies.
Sincerely,
[Your Name/Attorney Name] -
Sample 10: Unpaid Taxes
[Your Name/Accountant Letterhead]
[Date][Client Name]
[Client Address]RE: Demand for Payment – Unpaid Taxes
Dear [Client Name],
This letter is to inform you that you have an outstanding tax liability. The total unpaid taxes for [Tax Year] amount to $[Amount]. This includes [Specify the tax type i.e. income tax, property tax, etc.].
We request that you settle this debt as soon as possible. You have [Number] days from the date of this letter to pay the amount via [Payment Methods Accepted]. Please provide proof of payment upon completion.
Failure to pay the overdue taxes could result in penalties, interest charges, and further legal action.
Sincerely,
[Your Name/Accountant Name] -
Sample 11: Construction Work – Unpaid Contractor Fees
[Your Company Letterhead]
[Date][Client Name]
[Client Address]RE: Demand for Payment – Unpaid Contractor Fees (Contract #[Contract Number])
Dear [Client Name],
This letter is a formal request for payment regarding outstanding fees for construction work completed under contract number [Contract Number], dated [Date of Contract]. The remaining balance of $[Amount] is now due for work completed on [Specify Project or Phase].
We demand payment of the full amount of $[Amount] within [Number] days from the date of this letter. Payment can be made via [Payment Methods Accepted].
If payment is not received within the specified timeframe, we will have no alternative but to pursue legal action to recover the outstanding debt, including filing a mechanic’s lien.
Sincerely,
[Your Name/Company Name] -
Sample 12: Personal Loan to a Friend
[Your Name]
[Date][Friend’s Name]
[Friend’s Address]RE: Demand for Payment – Personal Loan
Dear [Friend’s Name],
This letter serves as a formal demand for the repayment of the personal loan I granted to you on [Date of Loan]. The original loan amount was $[Amount], and the current balance, including any agreed-upon interest, totals $[Amount].
I request that you repay the full amount of $[Amount] within [Number] days from the date of this letter. Payment can be made via [Payment Methods Accepted].
I value our friendship, but I must insist on the repayment of this loan as agreed upon. If payment is not received by the specified date, I will be forced to consider legal options to recover the debt.
Sincerely,
[Your Name] -
Sample 13: Breach of Lease Agreement – Damages
[Your Name/Landlord Letterhead]
[Date][Tenant Name]
[Tenant Address]RE: Demand for Payment – Damages to Property (Lease Agreement)
Dear [Tenant Name],
This letter serves as a formal demand for payment regarding damages to the property located at [Property Address], which occurred during your tenancy, as outlined in our lease agreement dated [Date of Lease Agreement]. The damages include [Specific List of Damages], and the cost of repairs totals $[Amount].
We demand that you remit payment for the damages in the amount of $[Amount] within [Number] days of the date of this letter. Payment can be made via [Payment Methods Accepted].
Failure to remit payment by the specified date will result in legal action to recover the damages, including potential claims against your security deposit.
Sincerely,
[Your Name/Landlord Name] -
Sample 14: Insurance Claim – Unpaid Benefits
[Your Name/Attorney Letterhead]
[Date][Insurance Company Name]
[Insurance Company Address]RE: Demand for Payment – Insurance Claim #[Claim Number]
Dear [Claims Adjuster Name],
This letter serves as a formal demand for payment of insurance benefits related to claim number [Claim Number], filed on [Date Claim Filed] under policy number [Policy Number]. This claim pertains to [Brief Description of Claim, e.g., car accident, property damage]. Despite providing all necessary documentation, including [List Key Documents Provided], the claim remains unpaid.
We demand full payment of $[Amount], representing the covered losses under the policy. Payment must be received within [Number] days from the date of this letter.
Failure to remit payment within the specified timeframe will result in further legal action to enforce the insurance policy and recover the owed benefits, including potential claims for bad faith.
Sincerely,
[Your Name/Attorney Name] -
Sample 15: Demand Letter for Defective Product
[Your Company Letterhead]
[Date][Supplier Name]
[Supplier Address]RE: Demand for Compensation – Defective Product (Order #[Order Number])
Dear [Supplier Name],
This letter constitutes a formal demand for compensation due to the defective product(s) delivered under order number [Order Number], placed on [Date of Order]. The delivered product(s) [Describe the Defect(s) e.g., malfunctioned, did not meet agreed-upon specifications]. This defect has resulted in [Describe the Damages e.g., loss of production, costs for repairs].
We demand compensation in the amount of $[Amount], representing the losses and expenses incurred as a result of the defective product(s). This includes [List Specific Expenses]. Please remit payment within [Number] days from the date of this letter via [Payment Methods Accepted].
If we do not receive a satisfactory response and compensation within the specified timeframe, we will be compelled to pursue legal remedies to protect our interests, including but not limited to breach of contract and warranty claims.
Sincerely,
[Your Name/Company Name] -
Sample 16: Demand for Payment – Promissory Note Default
[Your Name/Lender Letterhead]
[Date][Borrower Name]
[Borrower Address]RE: Demand for Payment – Promissory Note Default (Note Date: [Date of Promissory Note])
Dear [Borrower Name],
This letter serves as a formal demand for payment due to your default on the promissory note dated [Date of Promissory Note], with an original principal amount of $[Original Principal]. You have failed to make timely payments as required by the terms of the note, resulting in a current outstanding balance of $[Current Outstanding Balance], which includes principal, accrued interest, and late fees.
We demand immediate payment of the full outstanding balance of $[Current Outstanding Balance] within [Number] days from the date of this letter. Payment should be made via [Payment Methods Accepted].
If payment is not received by the specified deadline, we will be forced to take further legal action to recover the debt, including but not limited to accelerating the note, filing a lawsuit, and pursuing collection efforts.
Sincerely,
[Your Name/Lender Name] -
Sample 17: Demand for Payment – Business Partnership Dispute
[Your Name/Attorney Letterhead]
[Date][Partner Name]
[Partner Address]RE: Demand for Payment – Business Partnership Dispute
Dear [Partner Name],
This letter serves as a formal demand for payment arising from our business partnership agreement, dated [Date of Partnership Agreement]. This demand relates to [Describe the Specific Issue, e.g., misappropriation of funds, breach of fiduciary duty, unequal distribution of profits]. As a result of your actions, our partnership has suffered damages totaling $[Amount].
We demand that you compensate the partnership for these damages by remitting the full amount of $[Amount] within [Number] days of the date of this letter. Payment should be made to [Specify Payment Details].
Failure to comply with this demand will leave us with no alternative but to pursue legal remedies to protect the interests of the partnership, including seeking an accounting, dissolution of the partnership, and recovery of damages.
Sincerely,
[Your Name/Attorney Name] -
Sample 18: Unpaid Wages – Demand from Employee
[Your Name]
[Date][Employer Name]
[Employer Address]RE: Demand for Payment – Unpaid Wages
Dear [Employer Name],
This letter serves as a formal demand for payment of unpaid wages. I am writing to request payment for wages owed to me for the period of [Start Date] to [End Date]. I am owed $[Amount] for [Number] hours of work at a rate of $[Hourly Rate]. This includes [Specify any overtime or other additional compensation owed].
I demand that you remit the full payment of $[Amount] within [Number] days from the date of this letter. Payment should be made via [Preferred Payment Method].
Please be aware that if I do not receive payment within the specified timeframe, I will be forced to consider further action to recover the unpaid wages, including filing a claim with the Department of Labor and potentially pursuing legal action.
Sincerely,
[Your Name]
Conclusion
A demand letter to pay is a powerful tool for debt recovery. While these samples offer a starting point, always tailor the letter to your specific situation. Clarity, accuracy, and a professional tone are crucial for maximizing your chances of a successful outcome. Consider consulting with an attorney to ensure your letter complies with all applicable laws and regulations. Following these best practices can significantly increase your likelihood of recovering outstanding debts efficiently and effectively.
