Payment Demand Letter Template

A demand letter is a formal notice requesting money, possession of assets, or action on a legal matter. It is usually the last attempt to find a solution with another party before legal action is filed. In writing your demand letter, use this sample template as a guide which is ready-made and easy to use.

How to write a payment demand letter?

Writing tips when drafting a demand letter to a debtor:

1. Facts are important, don't assume everyone knows the facts;
2. Evidence should be referred to, for example, a contract, don't include it but you should refer to it;
3. Be specific as to what you want, make a demand;
4. Schedule a deadline and the method of payment;
5. Make an offer for a consequence.

Sample guide for a payment demand letter:

Below is provided a sample resignation letter. You can download it and use it after making changes as per your requirements and criteria. We are not only providing you tips, but also a sample cover letter that you can use after certain edits. Here is a sample letter for your guidance:

Dear Mr. /Mrs. {{DEBTOR}},

This is to advise you that you are in default under the terms of the promissory note dated, for failure to make the payments due there under on. The total amount due for those payments is amount. It is imperative that full payment be received on or before ten (10) days from the date of this letter, or the term for payment of your indebtedness will be accelerated and the entire principal balance and any unpaid interest will become immediately due and payable and proper legal action will be taken to enforce payment thereof. As you are aware, the terms of the promissory note provide that interest accrues, from the date of default, at the highest rate allowable by law, and you are liable, upon default, for all costs and reasonable attorney's fees incurred in collection.

Yours sincerely,

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