How to create a demand for payment letter

Written by mitchell holt
  • Share
  • Tweet
  • Share
  • Email

Don't expect people that owe you money to seek you out to pay you. A demand for payment letter is a firm letter that states the reasons a person should pay you and calls them to action in a variety of ways, according to Using verbal force, such as threatening court action, will tell the recipient they must make a decision--to pay tons of money on a lawyer in court or simply pay their debt. Writing a demand letter is simple and requires only a few components.

Skill level:

Other People Are Reading


  1. 1

    Familiarise yourself with the dispute. Think about the best way to word the dispute in the letter because it could be used if you go to court.

  2. 2

    Lay out the format of the letter. It's up to you how you lay it out, but it often includes--from top to bottom--business name and address of recipient, date, greeting, body, your contact information, salutation and your name. The body of the letter should start with a blunt statement that the recipient owes you money and tell the story of how you were inconvenienced.

  3. 3

    Write the letter with firm, but polite language. Do not attack the recipient personally. Encourage them to respond positively. Include a few subtle comments that will call the recipient to action (i.e. risks of losing, cost of a good defence, dispute being made public).

  4. 4

    Give the recipient a clear-cut way to resolve the dispute. Tell them exactly how much they owe you, a deadline for payment and where to send payment. Make it as easy on them as possible to resolve the issue. Remember, you just want to get your money, not punish the other party.

  5. 5

    Give it a professional look. If you have a letterhead, use it. Always use a computer or typewriter. Format is important in a letter of this nature. Keep a copy of the letter so you can use it in court if you don't get paid.

  6. 6

    Briefly touch on what will happen if they don't pay. Mention firmly and confidently that you will bring them to court if they fail to pay. This is one of the most important parts of a letter of this nature.

Don't Miss

  • All types
  • Articles
  • Slideshows
  • Videos
  • Most relevant
  • Most popular
  • Most recent

No articles available

No slideshows available

No videos available

By using the site, you consent to the use of cookies. For more information, please see our Cookie policy.