Final Demand Letter for Payment Template
A final demand is the last letter before you hand the account off or take it further. It works because it's specific: the exact amount, a real deadline, and the one step you'll take if it isn't paid. Keep it calm. Firm and factual reads as serious; angry reads as bluffing.
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The template
[Your Firm Name] [Your Address] [Date] [Client Contact Name] [Client Company] RE: Final notice, past-due balance of [$Amount] Dear [Client Name], Invoice #[Number] for [$Amount] was due on [Due Date]. We followed up on [Dates of Prior Contact] and have not received payment. If we do not receive full payment, or a written payment plan we have agreed to, by [Deadline], we will refer this account for further collection action. We would rather resolve this with you directly. Please call me at [Phone] before that date. Sincerely, [Your Name] [Your Firm Name]
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Customize this letter freeWhen to use this letter
- The invoice is 90 or more days past due and earlier reminders were ignored.
- A payment promise was made and broken.
- You are actually prepared to take the next step. Never threaten action you won't take.
Tips
- Set the deadline at least 7 business days out, and send the letter with proof of delivery.
- Only state a next step you can lawfully take. Rules vary by state and situation, so check before you send.
- Keep copies of every earlier reminder. That record is what makes the next step credible.
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This is a general business-communication template, not legal advice. You are responsible for compliance with the laws that apply to your collections activity.