Getting paid for services rendered or products delivered should be straightforward. Yet many businesses and individuals face the challenge of collecting payments from clients who drag their feet or simply refuse to pay. A demand letter serves as a formal request for payment, outlining the debt owed and the consequences of non-payment.
The right demand letter can make all the difference between receiving prompt payment and ending up in a lengthy legal battle. Each situation calls for a specific approach, from gentle reminders to stern warnings. These sample letters will help you craft the perfect demand notice for your situation.
Sample Letters of Demand Notice
Here are fifteen professionally crafted demand letters to help you recover what you’re rightfully owed.
1. Basic Payment Demand Letter for Professional Services
Subject: Payment Demand Notice – Invoice #12345
Dear Mr. Thompson,
This letter addresses the outstanding payment of $3,500 for consulting services provided by ABC Consulting from March 15 to April 30, 2024. Despite several payment reminders sent on May 15, June 1, and June 15, 2024, our records show this amount remains unpaid.
The services rendered included strategic planning sessions, market analysis reports, and implementation guidance, as detailed in our service agreement dated March 1, 2024. The payment terms clearly stated that full payment was due within 30 days of service completion.
Please submit payment within 7 business days of receiving this notice. You may pay via bank transfer to the account specified on the invoice or by check made payable to ABC Consulting. Should payment not be received by [date], we will need to take additional steps to recover the amount owed, which may include legal action.
This could result in additional costs and potentially affect your credit rating. We prefer to resolve this matter amicably and maintain our professional relationship.
Best regards,
Sarah Williams
Accounts Receivable Manager
ABC Consulting
Phone: (555) 123-4567
Email: s.williams@abcconsulting.com
2. Escalated Payment Demand for Construction Work
Subject: Final Payment Demand – Construction Project at 123 Oak Street
Dear Ms. Rodriguez,
This letter serves as a formal demand for payment regarding the residential renovation project completed at 123 Oak Street on January 15, 2024. The outstanding balance of $12,750 represents the final payment for work that includes kitchen remodeling, bathroom upgrades, and electrical system improvements.
Our company has fulfilled all contractual obligations, as evidenced by the certificate of completion signed by you on January 16, 2024. The payment terms specified in our contract required final payment within 30 days of project completion. That deadline passed on February 15, 2024.
Despite numerous attempts to contact you via phone and email over the past three months, we have received neither payment nor any explanation for the delay. This situation cannot continue indefinitely. As per Virginia state law, we reserve the right to place a mechanic’s lien on the property if payment is not received.
To avoid these measures, please remit payment in full by [date]. After this date, we will have no choice but to pursue all available legal remedies, including but not limited to filing a mechanic’s lien and initiating legal proceedings.
Payment can be made by certified check or wire transfer using the information provided on the original invoice.
Regards,
Michael Chen
Owner
Chen Construction LLC
Phone: (555) 987-6543
Email: m.chen@chenconstruction.com
3. Professional Services Late Payment Notice – First Warning
Subject: Past Due Payment Notice – Marketing Services
Dear Mr. Patterson,
This letter concerns the past due payment for marketing services provided by Digital Marketing Partners during Q1 2024. The outstanding amount of $5,875 covers social media management, content creation, and paid advertising campaigns as outlined in our service agreement dated December 15, 2023.
Our records indicate that despite regular monthly statements and two courtesy reminder emails, this invoice remains unpaid. The original payment due date was April 15, 2024. As stated in our service agreement, accounts past due by 30 days or more may be subject to a late payment fee of 1.5% per month.
We value our business relationship and understand that oversights can happen. However, we must insist on prompt payment to maintain uninterrupted service. Please note that continued non-payment may result in service suspension and referral to our collections department.
To avoid these consequences, please submit payment by [date]. You can pay through our secure client portal or via bank transfer using the details provided on your invoice. Should you have any questions about the charges or need to discuss payment arrangements, please contact our billing department.
Kind regards,
Robert Martinez
Finance Director
Digital Marketing Partners
Phone: (555) 234-5678
Email: r.martinez@dmpmarketing.com
4. Final Notice Before Legal Action
Subject: Final Demand Notice – Legal Action Pending
Dear Dr. Anderson,
This serves as your final notice regarding the unpaid balance of $8,950 for medical equipment supplied to your practice on September 1, 2023. Despite multiple payment notices and attempts to establish a payment plan, we have received neither payment nor any substantive response from your office.
The following attempts to resolve this matter have been made: – Initial invoice sent: September 5, 2023 – First reminder: October 5, 2023 – Second reminder: November 5, 2023 – Phone messages left: December 1, 15, and 30, 2023 – Previous demand letter: January 15, 2024
Your continued silence leaves us with no alternative but to prepare for legal action. Should payment not be received by [date], our legal department will file suit for the full amount plus interest, court costs, and legal fees as permitted by state law.
This situation can still be resolved without legal intervention. Contact our office immediately to either make payment or arrange a payment plan. We remain open to reasonable payment arrangements if proposed promptly.
Sincerely,
Amanda Johnson
Credit Manager
Medical Supply Solutions
Phone: (555) 345-6789
Email: a.johnson@medsupply.com
5. Property Damage Demand Letter
Subject: Demand for Payment – Property Damage Claim
Dear Mr. Wilson,
This letter demands payment for damages caused by your tree falling onto my property at 456 Maple Avenue on April 5, 2024. The incident resulted in significant damage to my garage roof, vehicle, and landscaping. Despite verbal agreements to cover these costs, no payment has been received.
An independent assessment values the total damage at $15,675, broken down as follows: – Garage roof repair: $7,500 – Vehicle damage: $5,875 – Landscape restoration: $2,300
Documentation supporting these amounts, including the arborist report confirming your tree’s poor maintenance, contractor estimates, and photographs, was provided to you on April 20, 2024. Your homeowner’s insurance representative, Mr. Smith, also received copies.
Please arrange payment or have your insurance company contact us by [date]. Should we not receive a satisfactory response, we will pursue legal remedies, including filing a civil lawsuit for damages, court costs, and associated fees.
This matter requires your immediate attention to avoid unnecessary legal expenses and court proceedings.
Regards,
Thomas Baker
456 Maple Avenue
Phone: (555) 456-7890
Email: t.baker@email.com
6. Rental Property Payment Demand
Subject: Demand for Past Due Rent – Unit 301
Dear Ms. Taylor,
This letter formally demands payment of $4,200 in past due rent for Unit 301 at Riverside Apartments. This amount represents two months of unpaid rent for March and April 2024, plus applicable late fees as specified in your lease agreement.
Your lease agreement dated August 1, 2023, clearly states that rent of $2,000 is due on the first of each month. Late fees of $100 per month apply after the fifth day. Despite multiple notices left at your door and sent via email, payment remains outstanding.
Please note that under state law and your lease terms, continued non-payment may result in eviction proceedings. To avoid this outcome, full payment must be received by [date]. Alternative arrangements may be considered if you contact the management office immediately to discuss your situation.
Should payment not be received by the specified date, we will begin eviction proceedings and seek all unpaid rent, late fees, court costs, and legal expenses as permitted by law.
Sincerely,
David Lee
Property Manager
Riverside Apartments
Phone: (555) 567-8901
Email: d.lee@riversideapts.com
7. Business Contract Breach Payment Demand
Subject: Payment Demand – Contract Breach Resolution
Dear Ms. Harrison,
This letter addresses the breach of our supply contract dated November 1, 2023, and demands payment of $23,500 for goods delivered but not paid for. The breach occurred when your company failed to make the required payments for three consecutive shipments while continuing to accept delivery.
The outstanding amount consists of: – December 2023 shipment: $7,500 – January 2024 shipment: $8,000 – February 2024 shipment: $8,000
Our contract clearly states that payments must be made within 30 days of delivery. Despite maintaining delivery of goods in good faith, we have received neither payment nor explanation for the delay. This situation has caused significant cash flow issues for our operations.
To resolve this matter without legal action, please remit payment in full by [date]. We remain open to discussing a structured payment plan if you contact us immediately. However, absent a response, we will pursue all available legal remedies.
Best regards,
Jennifer White
Chief Financial Officer
Quality Manufacturing Inc.
Phone: (555) 678-9012
Email: j.white@qualitymanufacturing.com
8. Personal Loan Repayment Demand
Subject: Formal Demand for Loan Repayment
Dear Mr. Brooks,
This letter serves as a formal demand for repayment of the $7,500 personal loan extended to you on July 15, 2023. According to our written agreement, this loan was to be repaid in full by January 15, 2024. Despite several conversations and your promises to pay, the loan remains outstanding.
The loan agreement, which you signed, clearly outlined the terms: – Principal amount: $7,500 – Interest rate: 5% per annum – Due date: January 15, 2024 – Late payment penalty: 1% per month
As of today, you owe: – Principal: $7,500 – Accrued interest: $375 – Late payment penalties: $150 – Total due: $8,025
Please arrange payment in full by [date] to avoid legal action. Should you need to discuss payment arrangements, contact me immediately. Be advised that further delay will result in additional interest and penalties.
Regards,
Patricia Moore
Phone: (555) 789-0123
Email: p.moore@email.com
9. Freelance Work Payment Demand
Subject: Payment Required – Freelance Design Project
Dear Mr. Campbell,
This letter demands payment of $2,850 for graphic design services provided between February 1 and March 15, 2024. The work included logo design, business card creation, and website graphics for your new business venture, as detailed in our project agreement.
All deliverables were completed and approved by you via email on March 20, 2024. The invoice sent on March 21, 2024, specified payment within 15 days. Despite following up through email and phone calls, payment remains outstanding.
As a freelance professional, timely payment for completed work is crucial for business operations. Your continued non-payment affects my ability to serve other clients and maintain my business. The quality of work delivered met all specifications and received your explicit approval.
Please submit payment by [date] to avoid further action. Payment can be made via bank transfer or through the payment link provided in the original invoice. Should payment not be received, next steps will include reporting to freelance platforms and pursuing legal collection methods.
Best regards,
Rachel Turner
Creative Design Solutions
Phone: (555) 890-1234
Email: r.turner@creativedesign.com
10. Vehicle Repair Payment Demand
Subject: Outstanding Payment – Auto Repair Services
Dear Ms. Foster,
This letter concerns the unpaid balance of $3,275 for auto repair services performed on your 2022 Toyota Camry on February 10, 2024. The repairs included transmission service, brake replacement, and electrical system diagnostics, all authorized by you prior to work completion.
Your vehicle was released based on your commitment to pay the full amount within one week. Despite this agreement and subsequent payment reminders, the balance remains unpaid. The repairs carried our standard 90-day warranty, which may be voided by non-payment.
Our records show the following communication attempts: – Text message reminder: February 17, 2024 – Phone call: February 24, 2024 – Email reminder: March 3, 2024 – Certified letter: March 15, 2024
To resolve this matter, please submit payment by [date]. We accept all major credit cards, certified checks, or cash. Continued non-payment may result in legal action and reporting to credit bureaus.
Sincerely,
Frank Cooper
Service Manager
AutoCare Express
Phone: (555) 901-2345
Email: f.cooper@autocare.com
11. Educational Services Payment Demand
Subject: Past Due Tuition Payment Notice
Dear Mr. and Mrs. Reynolds,
This letter addresses the outstanding tuition payment of $4,750 for your daughter Sarah’s spring semester at Brightwood Academy. Despite multiple reminders, this amount has remained unpaid since January 15, 2024.
The school’s policy clearly states that tuition must be paid before the semester begins or through an approved payment plan. While we understand that financial circumstances can change, maintaining communication with our billing office is essential.
Your daughter’s continued enrollment may be affected if payment arrangements are not made immediately. Additionally, the school may withhold academic records and transcripts until the account is brought current.
To maintain Sarah’s enrollment status, please submit payment by [date]. Contact our financial aid office to discuss payment plan options or financial assistance programs that might be available to your family.
Kind regards,
Margaret Phillips
Business Manager
Brightwood Academy
Phone: (555) 012-3456
Email: m.phillips@brightwoodacademy.edu
12. Wedding Services Payment Demand
Subject: Final Notice – Wedding Photography Payment
Dear Mr. and Mrs. Mitchell,
This letter demands payment of $3,850 for wedding photography services provided on December 31, 2023. This amount represents the final payment due for your wedding package, which included 8 hours of coverage, edited digital images, and a premium photo album.
All services were delivered as specified in our contract: – Event coverage completed: December 31, 2023 – Digital proofs delivered: January 15, 2024 – Final edited images ready: January 30, 2024
The contract stipulated final payment within 30 days of image delivery. Despite delivering preview images and maintaining regular communication, the balance remains unpaid. Until payment is received, the final edited images and photo album cannot be released.
Please submit payment by [date] to receive your complete wedding photo collection. Further delay may result in additional late fees and possible legal action to recover the amount owed.
Best regards,
Victoria Adams
Lead Photographer
Timeless Photography
Phone: (555) 123-4567
Email: v.adams@timelessphotos.com
13. Healthcare Services Payment Demand
Subject: Medical Bills Payment Required
Dear Mr. Barnes,
This letter addresses the outstanding balance of $2,975 for medical services provided at Healthy Life Medical Center on March 10, 2024. The charges cover your emergency room visit, diagnostic tests, and prescribed medications.
Our records show that your insurance provider has processed their portion of the claim, leaving you responsible for the remaining balance. Despite sending three billing statements and two phone messages, we have not received your payment or response.
As a healthcare provider, we strive to make medical care accessible through various payment options. We offer payment plans and financial assistance programs for qualifying patients. However, we must receive some communication from you to explore these options.
Please submit payment or contact our billing office by [date] to discuss payment arrangements. Failure to respond may result in referral to an external collection agency, which could affect your credit rating.
Sincerely,
Elizabeth Grant
Patient Accounts Manager
Healthy Life Medical Center
Phone: (555) 234-5678
Email: e.grant@healthylife.com
14. Commercial Lease Payment Demand
Subject: Commercial Lease Payment Arrears Notice
Dear Mr. Davidson,
This letter serves as formal notice of unpaid rent totaling $18,500 for your commercial space at 789 Business Plaza. This amount includes base rent for March and April 2024, plus associated late fees as outlined in your lease agreement.
Your lease agreement, dated June 1, 2023, requires rent payment by the first of each month. The payment history shows consistent late payments since December 2023, with March and April 2024 remaining completely unpaid.
As your commercial landlord, we have maintained the property and provided all services as required by the lease. The current situation places you in default under the lease terms. If payment is not received, we may exercise our rights to terminate the lease and initiate eviction proceedings.
To prevent these measures, submit payment in full by [date]. Should you wish to discuss your situation, contact our office immediately. We may consider a short-term payment plan if properly documented and secured.
Regards,
Gregory Watson
Property Management Director
Commercial Properties LLC
Phone: (555) 345-6789
Email: g.watson@commercialprops.com
15. Home Renovation Payment Demand
Subject: Final Payment Demand – Home Renovation Project
Dear Mrs. Hamilton,
This letter demands payment of $28,750 for the completed home renovation project at 567 Pine Street. This amount represents the final payment for work completed on February 28, 2024, including kitchen remodeling, bathroom upgrades, and interior painting.
All work has been completed according to the contract specifications, and you expressed satisfaction with the results during the final walkthrough on March 1, 2024. The payment terms in our agreement required final payment within 14 days of project completion.
The following attempts to collect payment have been made: – Final invoice delivered: March 1, 2024 – Email reminder: March 15, 2024 – Phone message: March 22, 2024 – Text message: March 29, 2024
Please submit payment by [date] to avoid legal action. We accept certified checks, wire transfers, or credit card payments. Should payment not be received, we will pursue all available legal remedies, including filing a mechanic’s lien on the property.
Best regards,
Daniel Thompson
Owner
Premium Home Renovations
Phone: (555) 456-7890
Email: d.thompson@premiumrenovations.com
Wrap-up: Professional Demand Notice Letters
These sample letters demonstrate effective approaches to requesting payment while maintaining professionalism. Each situation requires careful consideration of tone, detail, and consequences. A clear, firm demand combined with specific payment information and deadlines helps achieve the desired outcome. Using these templates as starting points, you can create demand letters suited to your specific circumstances.