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Demand Letter for Payment Template
Clearly demand payment of an overdue debt with a firm but professional notice.
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Demand Letter for Payment Template
[Your Name or Business Name]
[Your Title, if applicable]
[Street Address]
[City, State/Province, ZIP/Postal Code, Country]
Phone: [Phone Number]
Email: [Email Address]
[Date]
[Debtor Name or Business Name]
[Debtor Contact Person, if applicable]
[Street Address]
[City, State/Province, ZIP/Postal Code, Country]
Subject: Demand for Payment – [Invoice / Account / Reference No.: ______]
1. Identification of the Debt
Dear [Mr./Ms./Mx. Last Name] / [To Whom It May Concern],
This letter is a formal demand for payment of an outstanding balance owed by you to [Your Name or Business Name].
The debt arose in connection with:
Description: [Brief description of goods/services/loan]
Date(s) Provided or Due: [Date(s)]
Contract / Order / Agreement / Invoice Reference: [Reference Number(s)]
2. Amount Currently Due
As of the date of this letter, the total amount due is:
Principal Amount: [Currency and Amount]
Interest and/or Late Fees (if applicable): [Currency and Amount]
Total Amount Due: [Currency and Amount]
If interest or late fees are accruing, this total may increase after [Date].
3. Payment Deadline
You are hereby requested to pay the Total Amount Due in full no later than:
Payment Deadline: [Date – e.g., 10–14 days from the date of this letter]
If payment has already been sent, please provide written confirmation and proof of payment so that our records can be updated.
4. Payment Instructions
Payment may be made using the following method(s):
Bank Transfer:
Account Name: [Account Name]
Bank Name: [Bank Name]
Account Number / IBAN: [Account Number / IBAN]
SWIFT / BIC: [SWIFT/BIC, if applicable]
Payment Reference: [Reference to quote, e.g., invoice number]
Other Accepted Methods (if any):
[e.g., “Credit card via secure link,” “Check payable to [Name], mailed to [Address],” etc.]
5. Opportunity to Raise Questions or Disputes
If you believe that this amount is incorrect or that you do not owe this debt, you must notify us in writing no later than [Date – usually same as the payment deadline] and provide a clear explanation, including any supporting documents.
Correspondence about this matter should be sent to:
Email: [Your Email Address]
Mailing Address: [Your Mailing Address]
6. Consequences of Non-Payment
If we do not receive full payment of the Total Amount Due, or a written response reasonably resolving this matter, by the Payment Deadline stated above, we may take further steps without further notice, which may include one or more of the following:
Referring the matter to a collection agency;
Commencing legal proceedings to recover the debt, plus applicable costs and interest;
Exercising any rights we may have under our contract or under applicable law.
If legal or collection action becomes necessary, you may be liable for additional costs, interest, or fees to the extent permitted by law.
7. Reservation of Rights
Nothing in this letter shall be interpreted as a waiver of any rights or remedies available to [Your Name or Business Name] under the applicable contract or law. All such rights and remedies are expressly reserved.
8. Closing
We encourage you to treat this matter as urgent. Prompt payment or a good-faith proposal to resolve the outstanding balance may prevent additional costs and further steps.
If you wish to discuss a repayment plan or have any questions regarding this letter, please contact us at [Phone Number] or [Email Address].
Sincerely,
[Your Signature, if printed]
[Your Printed Name]
[Your Title, if applicable]
[Your Business Name, if applicable]
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Learn more about
Demand Letter for Payment Template
Click below for detailed info on the template.
For quick answers, scroll below to see the FAQ.
Click below for detailed info on the template.
For quick answers, scroll below to see the FAQ.
DEMAND LETTER FOR PAYMENT TEMPLATE FAQ
What is a demand letter for payment?
A demand letter for payment is a formal written notice sent by a creditor to a debtor to request payment of an overdue amount. It usually summarizes what is owed, refers to any invoices or contracts, sets a deadline, and warns of possible further action if the payment is not made.
When should I send a demand letter for payment?
You typically send a demand letter after ordinary reminders or informal requests have not worked. It can be used for unpaid invoices, overdue personal loans, outstanding rent, or any other clear, past-due financial obligation.
What should a demand letter for payment include?
A strong demand letter usually includes: the names and contact details of both parties; a description of the debt and its origin; invoice or reference numbers; the total amount due (including interest or late fees, if applicable); a firm payment deadline; accepted payment methods; and a statement of potential consequences if payment is not received.
Is a demand letter the same as starting legal action?
No. A demand letter is usually sent before taking legal steps. It puts the debtor on notice and often gives them a final chance to pay voluntarily. However, it can later help show that you tried to resolve the matter before going to court or using a collection agency.
Does this demand letter for payment template count as legal advice?
No. This is a general business template and not legal advice. Laws on debt collection, interest, and notices vary by location. For large amounts, disputes, or complex situations, you should consider speaking with a qualified lawyer in your jurisdiction.
Can AI Lawyer help me customize this demand letter for payment?
Yes. AI Lawyer can help you adapt this template to your situation by adjusting the tone, deadlines, and details about the debt while keeping the letter clear and professional. You still provide the true figures and documents and remain responsible for any final decisions about legal action.
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