What is a demand letter, and when do you send one?
Key takeaways
A demand letter is the step between friendly reminders and filing a claim.
Most give 10 to 14 days to pay. In Texas, a lawyer seeking fees under CPRC 38.002 must allow 30 days.
Send it two ways, email for speed and certified mail for proof, and keep copies.
If it is ignored, follow through on the step you named. An empty threat teaches the customer to wait.
What is a demand letter in simple terms?
It is a letter that says: you owe us this amount, for this work, pay by this date, or we take the next step. Nothing more mysterious than that. What makes it different from a reminder is the tone and the deadline. A reminder assumes the customer forgot. A demand letter assumes they have decided not to pay and puts the choice back on them in writing.
What should a demand letter include?
A judge or a customer should understand the whole story from one page. Keep it to the facts that matter.
| Part | What to write |
|---|---|
| Who and what | Your business name, their name, the invoice number and what the work was |
| Amount | The exact sum owed, plus any late fee your contract allows |
| History | The invoice date, the due date and the reminders you already sent |
| Deadline | A specific calendar date to pay by, commonly 10 to 14 days out |
| How to pay | A payment link, bank details or a mailing address |
| Next step | What you will do if it is not paid, such as filing in small claims court |
Our guide to writing a demand letter walks through each part with sample wording, and the free demand letter builder fills it in for you.
When should you send a demand letter?
Once friendly reminders have stopped working, usually 30 to 60 days past due. Before that, a final notice letter is often enough. Waiting much longer makes the debt harder to collect: memories fade, the customer may move on, and in some cases the business closes.
Does a demand letter have legal weight?
On its own it does not create a judgment or force payment. Its weight comes from what it proves. It shows the customer was told the amount, given a fair deadline and warned of the consequence. In Texas, for example, a claimant who hires a lawyer can only recover attorney's fees on a contract or services claim if the claim was presented and not paid within 30 days (Tex. Civ. Prac. & Rem. Code 38.002). A dated demand letter is the cleanest record of that.
What happens after you send one?
- The customer pays in full before the deadline. Send a short receipt and close the file.
- The customer replies with a dispute or asks for a payment plan. Answer in writing and keep the thread.
- Nothing happens. Follow through on the step you named, usually a small claims case for the unpaid invoice.
Can someone send it for you?
Yes. Some businesses would rather not write it themselves, or want it to come from a third party. Our demand letter service writes the letter from your invoice, sends it by email and certified mail and follows up, for $99 to start. If it ends up in court, $299 covers you through the hearing, with no cut of what you recover.
Last updated October 2026. Easy Small Claims is not a law firm and this page is general information, not legal advice.
Questions, answered
Is a demand letter legally required before small claims?
Usually not as a general rule, but it is still worth sending. It gives the customer a last clear chance to pay, it often settles the matter without court, and it shows the judge you acted reasonably. Some claims and fee rules do require a written demand first, so check the rules in your state for your type of claim.
How long after a demand letter can I expect payment?
If the customer is going to pay, it usually happens before the deadline in the letter, which is commonly 10 to 14 days. Some will call to ask for a payment plan instead. If the deadline passes with no payment and no reply, that silence is your answer, and the next step is the one your letter named.
Does a demand letter have to be sent by certified mail?
Certified mail is not always required, but it gives you proof the letter was sent and delivered, which helps if you later file a claim. Many businesses send the letter by email the same day so the customer sees it at once, then mail the same letter certified with a return receipt.
What happens if a demand letter is ignored?
Nothing happens on its own. You decide whether to take the next step, which for most business invoices under the state limit is a small claims case. The letter becomes evidence that you asked for payment, gave a fair deadline and named the consequence before you filed.
A small business owner himself, Nitin has been on the wrong end of an unpaid invoice and knows how easy it is to give up on one. He built Easy Small Claims so owners can get that money back. He is also a practicing barrister.