Demand Payment Letter

Demand Payment Letter


A letter of demand is drafted and sent out when you tried to get your invoice paid a lot of times, and it is time to take a serious action against the defaulter. Usually, a letter of demand is the final warning before taking a legal action. The letter can be sent out by you or the lawyer.

Before you draft this letter, it is vital to send the reminder letters. These reminder letters can be freindly so that you can maintain the relationship with the reader.

This letter states the amount that is owed, for what and when the invoice required to be paid. Since this letter is something that precedes the legal warning and thus you can mention that in the letter. Also, specify the date the invoice needed to be paid precisely and how many warnings are given. Specify the subject clearly so that the reader knows what the letter is about. A Below mentioned sample letter will help you draft an efficient letter.


Given below is a sample demand payment letter


Joe Owe
75 Debt Lane
Pittsburgh, PA 15216
(412) 555-2176


Pat Smith
56 Money Way
Pittsburgh, PA 15226
(724) 555-6712

Subject: Unpaid dues

Dear Mr. Owe:

In June of YYYY, I completed the work of painting your home, and the invoice was made of $10,000, on which we had agreed before starting the work. The first two installments were paid right on time, but you did not agree to pay the final installment of $3500. I have made many attempts to clear the invoice and sent you reminders on DD/MM/YYYY and DD/MM/YYYY, but you did not even reply to it. This is the final reminder to make the payments by the DD/MM/YYYY, or I will be forced to take you to court.

I trusted you to make installments when you said you wouldn’t be able to make the full payment at a time. I am expecting a response from you before DD/MM/YYYY. If the payment is not carried out before DD/MM/YYYY, I will go to the court, and this letter is an evidence of the failure of payment. I hope that you will save us both the time, effort and money and repay the dues by the date mentioned above.

For further assistance, please contact the undersigned. Thank you.


Pat Smith


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