Final Demand Letter: Writing Tips & Free Template

If you have provided goods or services to a client, and they are yet to pay you, a final demand letter may be necessary. A final demand letter is a formal document requesting payment for an outstanding debt. The final demand letter template in this article will help you get started.

This post will provide an overview of a final demand letter, what it should include, and how to write one effectively.

What is a Final Demand Letter?

A final demand letter is a formal document that demands payment from someone who owes money. It is typically sent as a last resort after other attempts to collect payment have failed. 

The letter should clearly state the amount owed, the reason for the debt, and a deadline for payment. It may also include legal consequences if payment is not received by the deadline. 

A debt collector or a lawyer representing the creditor often sends a final demand letter. If you receive a final demand letter, it is essential to take it seriously and act quickly to avoid further legal action.

fountain pen on black lined paper
Photo by Aaron Burden on Unsplash

What’s Included in a Final Demand Letter?

A final demand letter should include the following elements:

  • The date of the letter. This is important for record-keeping purposes and can also remind the debtor of how long the debt has been outstanding.
  • The debtor’s name and contact information. This should include the debtor’s full name, address, and phone number.
  • A reference to the original agreement or invoice. This should include the date of the original agreement or invoice, the amount owed, and any relevant details about the goods or services provided.
  • A clear and concise statement of the debt. This should clearly state the amount owed, the due date, and any interest or fees that have accrued.
  • A deadline for payment. This should be a specific date by which the debtor must pay the debt or make arrangements to pay.
  • A warning of legal action. This should clarify that legal action may be pursued if the debt remains unpaid after the deadline.
  • A statement of willingness to negotiate. This can be included to encourage the debtor to contact you to discuss payment options.

How to write a Final Demand Letter

When writing a final demand letter, it’s important to remember that the tone should be firm but professional. The following tips can help you write an effective final demand letter:

Begin with a clear statement of the debt owed

Start the letter with a clear and concise statement of the original amount, any interest or fees accrued, and the total amount owed.

Explain the repercussions of non-payment

Make it clear to the debtor that you may take legal action if they do not pay the debt by the deadline. This can include filing a lawsuit or turning the debt to a collections’ agency.

Offer payment options

If you are willing to negotiate a payment plan or accept a partial payment, clarify this in the letter. This can encourage the debtor to contact you to discuss payment options.

Provide a deadline for payment

Be specific about the deadline for payment. And make it clear that legal action may be pursued if the debt is not paid by that date.

Keep a copy of the letter

It’s essential to keep a copy of the final demand letter for your records. This can be used as evidence if legal action is necessary.

Final Demand Letter Template

[Your Name]

[Your Address]

[City, State ZIP Code]

[Your Phone Number]

[Your Email]


[Recipient Name]

[Recipient Address]

[City, State ZIP Code]

Dear [Recipient Name],

I am writing to communicate a final demand for payment of the outstanding debt you owe me. Despite my previous attempts to collect the debt, you have failed to pay me the amount owed, which is [insert the amount owed].

Be reminded that the debt has been outstanding for [insert the period]. I have tried to reach out to you and resolve the issue, but my efforts have been unsuccessful.

As per the terms of the agreement between us, the payment was due on [insert the due date]. However, you have failed to make the payment, and as a result, I have been forced to pursue legal action to recoup the debt. I am still open to resolving the matter outside of court. But if I do not receive the payment by [insert the date], I will have no choice but to take legal action against you.

I urge you to take this matter seriously and make the payment immediately. Failure to do so will result in legal action, and you will be responsible for all associated costs and fees.

Please make the payment to the following account [insert account details] within the next [insert the number of days] days.

If I do not receive the payment by the deadline, I will be forced to take legal action against you.


[Your Name]


Writing a final demand letter can be a powerful tool for resolving disputes and getting paid what you’re owed. Keep your letter concise and clear, including all relevant details and specific demands for action. Be professional and polite but firm in your request.

Consider seeking legal advice before sending the letter. With the final demand letter template in this guide, you can increase your chances of reaching a satisfactory resolution.

Abir is a data analyst and researcher. Among her interests are artificial intelligence, machine learning, and natural language processing. As a humanitarian and educator, she actively supports women in tech and promotes diversity.

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