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How do you write a demand letter for payment?

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Quick Answer

To write a demand letter for payment, summarize the facts of the situation so they are on record. Refrain from attacks, and subtly explain what the other party stands to risk. Outline exactly what you seek, and explain the legal actions you plan to take if necessary.

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Full Answer

  1. Explain the facts of the situation

    Include exact dates and the where, why, how and more of the dispute in question. Include dollar amounts and any claims the other party made. Explain how you plan to prove your case, and list what any witnesses are prepared to say.

  2. Explain the remedies you seek if no payment follows

    Outline the ways you plan to address the situation if payment is not made. This is designed to make the other party consider the risks of losing a lawsuit in small claims court or elsewhere, the time and energy defending a lawsuit might take and the possible negative publicity. Provide a deadline for payment, and specify the penalty, such as filing in small claims court, if the date is not met.

  3. Outline the exact payment you seek

    Use specific dollar amounts, and refer to enclosed invoices as necessary. Provide your contact information, such as a phone number where you can be reached during the day and at night.

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