Demand Letter

Demand LetterIntroduction:

A Demand letter is written by a company that is seeking to recoup its losses by its bad debtors. Instead of seeking the legal redress, which is a slow process, the company can choose to write a demand letter personally to its debtor requesting quick settlement of the outstanding amounts, failing which harsher actions can be employed against the debtor.

As it is a formal letter, keep the tone of the letter formal. Make sure the letter is crisp and to the point. Depending on the necessity of the situation the tone of the letter can be decided. Make sure there are no grammatical or spelling errors in the letter. Do ask in the letter if the customer or client needs more time or any other kind of help from the company.


Sample Letter:


Gregory Ray

Central Products & Services

1712 Rafe Lane
Leland, MS 38756





Melanie G. Henderson

601 Science Center Drive
Pocatello, ID 83202

Ms. Henderson,

RE: Demand on settling outstanding payment

I, Gregory Ray, on behalf of central products and services write this letter tor remind you of the outstanding debt. We have been unsuccessful in getting you to settle your outstanding amounts of $450 since DD/MM/YYYY. You have already enjoyed the 30 days credit on the purchases made at Central Products & Services on DD/MM/YYYY. As you have been our long-standing customer, we gave you a lot of time.

Despite the few reminders and polite requests on you to settle your outstanding amount quickly, you have not responded favorably. You have not responded to many of our emails, messages, and phone calls. As such, you will leave Central Products & Services little choice but to consider legal proceedings against you, if you do not settle your outstanding $450 by the end of this month.

Attached is a copy of the invoice of the goods that you have purchased from Central Products & Services with the payment terms and conditions stated very clearly. Kindly contact the undersigned for prompt settlement.

We hope you will not disappoint us that will lead us to take harsh steps as we have a lot of respect for our partnership. Please do let us know if you need more time or any other kind of assistance from us. We are ready to cooperate if there is any emergency that you are currently facing.


Gregory Ray

Central Products & Services

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