Crafting Effective Demand Letters: Get Paid Faster
A well-written demand letter for payment is crucial for recovering outstanding debts. It serves as a formal notice to the debtor, outlining the amount owed, the reason for the debt, and a deadline for payment. It demonstrates your seriousness about collecting the debt and can often prevent the need for more costly legal action. The clarity and tone of your letter can significantly impact the likelihood of a prompt response.
This article provides 25 sample demand letters suitable for various situations, from invoices for services rendered to overdue loans. Remember to adapt these templates to your specific circumstances and keep a copy of the letter for your records. Always send the letter via certified mail with return receipt requested to ensure proof of delivery.
25 Sample Demand Letters for Payment
Sample 1: Simple Invoice
[Your Name/Company Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
[Date]
[Debtor’s Name/Company Name]
[Debtor’s Address]
Subject: Demand for Payment – Invoice #[Invoice Number]
Dear [Debtor’s Name],
This letter is to formally demand payment for invoice #[Invoice Number] totaling [Amount], which was issued on [Date of Invoice]. The invoice is for [Brief Description of Services/Goods]. A copy of the invoice is attached for your convenience.
Please remit payment within [Number] days of the date of this letter. You can make payment via [Payment Methods Accepted].
If payment is not received by [Date], we will be forced to pursue further legal action to recover the debt.
Sincerely,
[Your Name/Company Name]
Sample 2: Overdue Loan
[Your Name/Company Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
[Date]
[Debtor’s Name/Company Name]
[Debtor’s Address]
Subject: Demand for Payment – Overdue Loan Agreement
Dear [Debtor’s Name],
This letter serves as a formal demand for payment of your outstanding loan balance, as per the loan agreement dated [Date of Loan Agreement]. The current outstanding balance, including interest, is [Amount].
We have previously contacted you regarding this overdue balance on [Date(s) of previous contact, if any]. However, we have yet to receive payment.
We require full payment within [Number] days of the date of this letter. Failure to comply will result in further legal action to recover the full amount owed, including legal fees and court costs.
Please remit payment to [Payment Instructions].
Sincerely,
[Your Name/Company Name]
Sample 3: Past Due Rent
[Your Name/Company Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
[Date]
[Debtor’s Name/Company Name]
[Debtor’s Address]
Subject: Demand for Payment – Past Due Rent
Dear [Debtor’s Name],
This letter is to inform you that your rent payment for [Month], in the amount of [Amount], is now overdue. According to our records, we have not received your payment. This constitutes a breach of your lease agreement.
We demand immediate payment of the full amount of [Amount]. Please remit payment within [Number] days of the date of this letter to avoid further action, including possible eviction proceedings.
You can make payment via [Payment Methods Accepted].
Sincerely,
[Your Name/Company Name]
Sample 4: Services Rendered
[Your Name/Company Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
[Date]
[Debtor’s Name/Company Name]
[Debtor’s Address]
Subject: Demand for Payment – Services Rendered Invoice #[Invoice Number]
Dear [Debtor’s Name],
This letter serves as a formal demand for payment of services rendered as detailed in Invoice #[Invoice Number] amounting to [Amount]. The invoice was issued on [Date of Invoice] and covers [Brief description of the service provided].
Please remit payment within [Number] days of the date of this letter. You can make payment via [Payment Methods Accepted]. A copy of the original invoice is attached for your convenience.
If payment is not received by [Date], we will consider legal options to recover the outstanding balance.
Sincerely,
[Your Name/Company Name]
Sample 5: Supply of Goods
[Your Name/Company Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
[Date]
[Debtor’s Name/Company Name]
[Debtor’s Address]
Subject: Demand for Payment – Supply of Goods Invoice #[Invoice Number]
Dear [Debtor’s Name],
We are writing to formally demand payment for the goods supplied as per invoice #[Invoice Number] dated [Date of Invoice]. The total amount due is [Amount]. These goods consisted of [Brief Description of Goods].
Despite our previous communications, the payment remains outstanding. We kindly request that you make the payment within [Number] days from the date of this letter. You can make the payment via [Payment Methods Accepted].
If we do not receive payment by [Date], we will have no option but to take further action to recover the debt, including pursuing legal remedies.
Sincerely,
[Your Name/Company Name]
Sample 6: Personal Loan to Friend
[Your Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
[Date]
[Debtor’s Name]
[Debtor’s Address]
Subject: Demand for Payment – Personal Loan
Dear [Debtor’s Name],
This letter serves as a formal demand for repayment of the personal loan I extended to you on [Date of Loan], in the amount of [Amount]. We agreed on a repayment schedule of [Repayment Terms, if any].
Despite our agreement, I have not received the agreed-upon payments. The current outstanding balance is [Amount].
I request that you make a payment arrangement within [Number] days from the date of this letter. If I do not hear from you or receive a payment by [Date], I will be forced to consider further action.
Sincerely,
[Your Name]
Sample 7: Late Payment Fee Included
[Your Name/Company Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
[Date]
[Debtor’s Name/Company Name]
[Debtor’s Address]
Subject: Demand for Payment – Invoice #[Invoice Number] – Late Payment Fee Applied
Dear [Debtor’s Name],
This letter is to formally demand payment for invoice #[Invoice Number] totaling [Original Amount], which was issued on [Date of Invoice]. As the invoice is now overdue, a late payment fee of [Late Fee Amount] has been added, bringing the total amount due to [Total Amount Due].
Please remit payment of [Total Amount Due] within [Number] days of the date of this letter. You can make payment via [Payment Methods Accepted]. A copy of the invoice is attached for your convenience.
If payment is not received by [Date], we will be forced to pursue further legal action to recover the debt, including late fees.
Sincerely,
[Your Name/Company Name]
Sample 8: Final Demand Before Legal Action
[Your Name/Company Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
[Date]
[Debtor’s Name/Company Name]
[Debtor’s Address]
Subject: FINAL DEMAND FOR PAYMENT – Invoice #[Invoice Number] – AVOID LEGAL ACTION
Dear [Debtor’s Name],
This letter serves as a FINAL DEMAND for payment of invoice #[Invoice Number] totaling [Amount], which was issued on [Date of Invoice]. Previous attempts to collect this debt have been unsuccessful.
This is your LAST OPPORTUNITY to resolve this matter amicably and avoid further legal action. We demand full payment of [Amount] within [Number] days of the date of this letter.
If we do not receive payment in full by [Date], we will have no choice but to initiate legal proceedings to recover the debt, including all associated legal fees and court costs.
You can make payment via [Payment Methods Accepted].
Sincerely,
[Your Name/Company Name]
Sample 9: Payment Plan Offer
[Your Name/Company Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
[Date]
[Debtor’s Name/Company Name]
[Debtor’s Address]
Subject: Demand for Payment – Invoice #[Invoice Number] – Payment Plan Offer
Dear [Debtor’s Name],
This letter is regarding invoice #[Invoice Number] for [Amount], issued on [Date of Invoice]. We understand that you may be experiencing financial difficulties. To facilitate the repayment of this debt, we are offering a payment plan.
We propose the following payment plan: [Outline the proposed payment plan, e.g., monthly installments of X amount]. If you accept this plan, please sign and return the attached agreement. This offer is valid until [Date].
If you prefer not to accept the payment plan, we require full payment of [Amount] within [Number] days of the date of this letter. If we do not receive payment or a signed agreement by [Date], we will be forced to consider other options.
Sincerely,
[Your Name/Company Name]
Sample 10: Referral to Collections Agency
[Your Name/Company Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
[Date]
[Debtor’s Name/Company Name]
[Debtor’s Address]
Subject: Demand for Payment – Invoice #[Invoice Number] – Referral to Collections
Dear [Debtor’s Name],
This letter concerns invoice #[Invoice Number] for the amount of [Amount], issued on [Date]. Despite multiple attempts to contact you regarding this outstanding balance, we have not received payment.
Please be advised that unless we receive full payment of [Amount] within [Number] days from the date of this letter, we will be forced to refer your account to a collections agency. This action will likely have a negative impact on your credit rating.
To avoid this, please make immediate payment via [Payment methods accepted].
Sincerely,
[Your Name/Company Name]
Sample 11: Payment for Damaged Goods
[Your Name/Company Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
[Date]
[Debtor’s Name/Company Name]
[Debtor’s Address]
Subject: Demand for Payment – Invoice #[Invoice Number] for Damaged Goods
Dear [Debtor’s Name],
This letter is to formally demand payment for damages incurred to goods outlined in invoice #[Invoice Number] totaling [Amount], which was issued on [Date of Invoice]. The damage occurred due to [Brief explanation of how the goods were damaged, e.g., mishandling during shipping].
We have enclosed photographic evidence and a detailed report documenting the damage. Please remit payment within [Number] days of the date of this letter. You can make payment via [Payment Methods Accepted].
If payment is not received by [Date], we will be forced to pursue further legal action to recover the debt and associated costs.
Sincerely,
[Your Name/Company Name]
Sample 12: Breach of Contract
[Your Name/Company Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
[Date]
[Debtor’s Name/Company Name]
[Debtor’s Address]
Subject: Demand for Payment – Breach of Contract
Dear [Debtor’s Name],
This letter serves as a formal demand for payment due to your breach of contract, dated [Date of Contract]. Specifically, you have failed to [Describe the specific breach of contract], as outlined in section [Section number] of the agreement.
As a result of this breach, we have incurred damages amounting to [Amount], including [List of Damages, e.g., lost profits, additional expenses]. We demand payment of [Amount] within [Number] days of the date of this letter.
Failure to comply with this demand will result in the commencement of legal proceedings to recover all damages and associated legal costs.
Sincerely,
[Your Name/Company Name]
Sample 13: Payment for Professional Services
[Your Name/Company Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
[Date]
[Debtor’s Name/Company Name]
[Debtor’s Address]
Subject: Demand for Payment – Invoice #[Invoice Number] for Professional Services
Dear [Debtor’s Name],
This letter is to formally demand payment for professional services rendered as detailed in Invoice #[Invoice Number] amounting to [Amount]. The invoice was issued on [Date of Invoice] and covers [Brief description of the professional service provided, e.g., legal consultation, architectural design].
Please remit payment within [Number] days of the date of this letter. You can make payment via [Payment Methods Accepted]. A copy of the original invoice is attached for your convenience detailing the services performed.
If payment is not received by [Date], we will consider our legal options to recover the outstanding balance, plus any applicable interest and legal fees.
Sincerely,
[Your Name/Company Name]
Sample 14: Payment for Medical Bills
[Your Name/Company Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
[Date]
[Debtor’s Name/Company Name]
[Debtor’s Address]
Subject: Demand for Payment – Medical Bill #[Bill Number]
Dear [Debtor’s Name],
This letter serves as a formal demand for payment of your outstanding medical bill #[Bill Number], totaling [Amount]. The bill is for services rendered on [Date of Service]. We have attached a copy of the bill for your records.
We understand that medical bills can sometimes be confusing. If you have any questions regarding this bill, please contact our billing department at [Phone Number].
Please remit payment within [Number] days of the date of this letter. If payment is not received by [Date], we will need to consider further collection efforts.
Sincerely,
[Your Name/Company Name]
Sample 15: Payment for Software License
[Your Name/Company Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
[Date]
[Debtor’s Name/Company Name]
[Debtor’s Address]
Subject: Demand for Payment – Software License Invoice #[Invoice Number]
Dear [Debtor’s Name],
We are writing to formally demand payment for the software license as per invoice #[Invoice Number] dated [Date of Invoice]. The total amount due is [Amount] and pertains to the license for [Software Name].
Despite our previous reminders, the payment remains outstanding. We kindly request that you make the payment within [Number] days from the date of this letter. You can make the payment via [Payment Methods Accepted].
If we do not receive payment by [Date], we will be forced to revoke your software license and take further action to recover the debt, including legal proceedings.
Sincerely,
[Your Name/Company Name]
Sample 16: Payment for Training Services
[Your Name/Company Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
[Date]
[Debtor’s Name/Company Name]
[Debtor’s Address]
Subject: Demand for Payment – Invoice #[Invoice Number] for Training Services
Dear [Debtor’s Name],
This letter serves as a formal demand for payment of invoice #[Invoice Number] amounting to [Amount] for the training services provided on [Date of Training] for [Training Description]. A detailed breakdown of the services is attached for your convenience.
Please remit payment within [Number] days of the date of this letter. You can make payment via [Payment Methods Accepted].
If payment is not received by [Date], we will pursue all available legal remedies to recover the outstanding balance.
Sincerely,
[Your Name/Company Name]
Sample 17: Payment for Website Design
[Your Name/Company Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
[Date]
[Debtor’s Name/Company Name]
[Debtor’s Address]
Subject: Demand for Payment – Website Design Invoice #[Invoice Number]
Dear [Debtor’s Name],
This letter is to formally demand payment for the website design services rendered as per invoice #[Invoice Number] with a total amount of [Amount]. This invoice was issued on [Date of Invoice] upon completion of the agreed-upon design work.
We kindly request that you make the payment within [Number] days of this notice. Payments can be made through [Payment Methods Accepted]. A copy of the detailed invoice is attached.
If payment is not received by [Date], we reserve the right to take necessary legal steps to recover the debt. This will also include any legal costs incurred.
Sincerely,
[Your Name/Company Name]
Sample 18: Payment for Consulting Services
[Your Name/Company Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
[Date]
[Debtor’s Name/Company Name]
[Debtor’s Address]
Subject: Demand for Payment – Invoice #[Invoice Number] for Consulting Services
Dear [Debtor’s Name],
This letter serves as a formal demand for the payment of invoice #[Invoice Number], which amounts to [Amount], issued on [Date of Invoice]. This invoice covers consulting services provided to your company during the period of [Start Date] to [End Date], as per our signed agreement.
Please remit full payment within [Number] days from the date of this letter. Payment can be made via [Payment Methods Accepted].
Should we not receive your payment by [Date], we will unfortunately have no option but to pursue legal action to recover the amount due. This may also affect your credit rating.
Sincerely,
[Your Name/Company Name]
Sample 19: Payment for Event Planning Services
[Your Name/Company Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
[Date]
[Debtor’s Name/Company Name]
[Debtor’s Address]
Subject: Demand for Payment – Invoice #[Invoice Number] – Event Planning Services
Dear [Debtor’s Name],
We are writing concerning the outstanding payment for the event planning services we provided for your event on [Date of Event], as detailed in invoice #[Invoice Number]. The total amount due is [Amount].
Despite our previous communication attempts, payment has not been received. We request that you make the payment within [Number] days of this letter. We accept payments via [Payment Methods Accepted].
Please be aware that if payment is not received by [Date], we may initiate legal proceedings to recover the amount owed, along with any accrued interest and legal costs.
Sincerely,
[Your Name/Company Name]
Sample 20: Demand for Refunded Payment
[Your Name/Company Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
[Date]
[Debtor’s Name/Company Name]
[Debtor’s Address]
Subject: Demand for Payment – Refund #[Refund Number]
Dear [Debtor’s Name],
This letter pertains to refund #[Refund Number] due on [date] for the amount of [Amount]. The payment relates to [Explain why the payment is to be refunded, e.g., cancelled order, returned item].
We are writing because we have not received the refund. Please remit the amount within [Number] days of the date of this letter. You can make payment via [Payment Methods Accepted].
If we do not receive payment by [Date], we will consider further actions to reclaim our money.
Sincerely,
[Your Name/Company Name]
Sample 21: Payment for Freelance Work
[Your Name/Company Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
[Date]
[Debtor’s Name/Company Name]
[Debtor’s Address]
Subject: Demand for Payment – Invoice #[Invoice Number] – Freelance Work
Dear [Debtor’s Name],
This letter is to demand payment for freelance work as outlined in invoice #[Invoice Number] totaling [Amount], which was issued on [Date of Invoice]. The invoice is for [Brief Description of Freelance Work Performed]. A copy of the invoice is attached for your convenience.
Please remit payment within [Number] days of the date of this letter. You can make payment via [Payment Methods Accepted].
If payment is not received by [Date], we will be forced to pursue further legal action to recover the debt.
Sincerely,
[Your Name/Company Name]
Sample 22: Payment for Equipment Rental
[Your Name/Company Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
[Date]
[Debtor’s Name/Company Name]
[Debtor’s Address]
Subject: Demand for Payment – Invoice #[Invoice Number] – Equipment Rental Fees
Dear [Debtor’s Name],
This letter serves as a formal demand for payment related to equipment rental fees as detailed on Invoice #[Invoice Number] for a total of [Amount], billed on [Date of Invoice]. The fees are in relation to [Description of Rented Equipment], used during the period [Start Date] to [End Date].
Despite previous communications, payment has not yet been made. We hereby request full payment to be made within [Number] days following the date of this letter. You may submit payment via [Payment Methods Accepted].
Failure to process the payment within the stipulated timeframe will result in additional late payment charges, as well as possible legal action.
Sincerely,
