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Demand for Payment
Formally request overdue payments and protect your rights with this Demand for Payment Template.
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Demand for Payment Template
From (Creditor):
Name/Company: __________________________
Address: __________________________
Email: __________________________
Phone: __________________________
To (Debtor):
Name/Company: __________________________
Address: __________________________
Email: __________________________
Phone: __________________________
1. Date and Subject Line
Date: __________________________
Subject: Demand for Payment – Overdue Account
2. Reference to Agreement
This demand relates to the agreement dated [Agreement Date] between [Creditor Name] and [Debtor Name] regarding the following:
[Brief description of the transaction or agreement]
3. Amount Owed
As of the date of this letter, the total amount due is:
Principal Amount: $[Amount]
Late Fees/Penalties: $[Amount, if applicable]
Total Due: $[Total Amount]
4. Payment Deadline
You are hereby required to pay the total amount due no later than [Final Payment Date].
Payment may be made via [Accepted Payment Methods], sent to the following address or account:
[Payment Instructions]
5. Consequences of Non-Payment
If full payment is not received by the deadline, [Creditor Name] may take further action, which may include:
Initiating legal proceedings.
Engaging a debt collection agency.
Reporting the delinquency to credit bureaus.
6. Contact Information
If you believe this demand was issued in error or need to discuss a payment arrangement, please contact us immediately at [Phone Number] or [Email Address].
7. Closing and Signature
Sincerely,
Signature: __________________________
Printed Name: __________________________
Title/Position: __________________________
Details
Learn more about
Demand for Payment
DEMAND FOR PAYMENT FAQ
What is a Demand for Payment?
A Demand for Payment is a written notice sent to a debtor or customer requesting payment for overdue amounts. It serves as an official reminder and warning before legal or collection actions are taken.
Why is a Demand for Payment important?
It creates a documented record of the attempt to collect debt, which is often legally required before proceeding with actions such as filing a lawsuit or engaging a collection agency. It also encourages voluntary repayment by outlining consequences clearly.
When should you send a Demand for Payment?
Send a demand when payment is past due beyond the agreed-upon grace period or when previous reminders have been ignored. Prompt action helps prevent further financial loss.
What should a Demand for Payment include?
The notice should specify the amount owed, due dates, related invoice or contract details, and a clear deadline for payment, along with potential consequences for non-payment.
What happens if the debtor ignores the demand?
If payment is not made by the specified deadline, the creditor may pursue additional steps, such as initiating legal proceedings, engaging a debt collector, or reporting the default to credit agencies.
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