A demand letter asks, firmly and in writing, for money you’re owed. Many people pay once they see you’re serious, and some small claims courts expect you to have sent one before you sue.
Free Demand Letter for Payment template
Fill in the blanks: the document updates as you type. Nothing you enter leaves your browser.
____ ____
____
____ ____
Demand for Payment of $____
Dear ____,
This letter is a formal demand for payment of $____, which you owe me for the following reason:
____
Despite my earlier requests, this amount remains unpaid.
Please pay the full amount of $____ no later than ____ by ____.
If I do not receive payment by that date, I intend to file a claim in small claims court (or other appropriate court) to recover the amount owed, plus court costs and any interest allowed by law, without further notice to you.
I would prefer to resolve this without going to court. If you believe this amount is incorrect, or would like to discuss a payment plan, please contact me before the deadline.
Sincerely,
____
This free template is general information, not legal advice, and may not suit your state or situation. Some documents must be signed before witnesses or a notary. For anything important, have a lawyer review it.
What to include
- The exact amount and how you calculated it.
- Why it’s owed: the agreement, invoice, loan or damage, with dates.
- A firm deadline, usually 10-14 days out.
- How to pay, so there’s no excuse.
- What happens next if they don’t pay, usually small claims court.
Small claims limits
Small claims courts handle disputes up to a set limit, from about $2,500 to $25,000 depending on the state. You don’t need a lawyer, and filing fees are modest. Keep a copy of your demand letter and proof of delivery to show the judge.
Stay professional
Don’t threaten criminal charges or public shaming to collect a debt: that can backfire legally. Facts, a deadline and a clear next step work best.
Frequently asked questions
Do I have to send a demand letter before small claims?
Some states and courts require it, and judges generally like to see that you tried. It’s always a good idea.
How should I send it?
Certified mail with return receipt, plus email or text so there’s a dated record.
Questions from readers
Question about the Demand Letter for Payment? Ask it here. We answer common questions in general terms on this page. This is not legal advice.
