Can I add a late fee?

Only if a late fee was specified in your original contract or invoice terms — you can't add one retroactively. The generator explicitly won't add a fee that wasn't already agreed to.

How long should I give them to pay?

Industry practice is 7-14 days from the letter — we show a live warning if the deadline you pick is shorter than that.

Will this actually work?

A demand letter can't guarantee payment, but it's the standard, low-cost first step before legal action, and clients often pay once they receive a formal, professional notice.

ContractAI Pro

Payment Demand Letter

Demand Letter Template — Get Paid for an Unpaid Invoice

A formal notice demanding payment of an overdue invoice before you escalate — the single most useful document for a freelancer who isn't getting paid.

Generate yours free — no signup

~3 min · 17 short questions · AI-generated documents are not legal advice.

What Is a Demand Letter?

A demand letter is a formal, written notice to a client who hasn't paid an invoice, stating the amount owed, the deadline to pay, and what happens if they don't. It's the standard pre-collection step before small claims court, a collections agency, or formal legal action — and it's often enough on its own to get a slow-paying client to finally pay.

When to Send a Demand Letter

A client's invoice is past due and reminders haven't worked
You're preparing to escalate to small claims court or a collections agency and need a paper trail
You want a firm, professional final notice before cutting off further work for a non-paying client

What's Included

Invoice reference & amount breakdown
Exact payment deadline (real date, not "soon")
Accepted payment methods
Delivery method (certified mail option)
Evidence-preservation notice
Stated consequence if unpaid
Optional attorney cc: line

Glossary

Demand Letter: A formal written notice demanding a specific action — here, payment of an overdue invoice by a stated deadline — before the sender escalates further.
Small Claims Court: A simplified, lower-cost court process (no lawyer typically required) for recovering money owed up to a state-specific dollar limit — the usual next step after a demand letter goes unanswered.
Certified Mail, Return Receipt Requested: A USPS mail option that gives the sender proof the letter was delivered and signed for — useful evidence if the matter ends up in court.
Evidence Preservation / Litigation Hold: A request that the recipient keep all related documents and communications instead of deleting them, in case the dispute proceeds to legal action.
Statutory Interest: Interest a court can award on unpaid amounts under state law, separate from any late fee written into the original contract. Rates and rules vary significantly by state.

Ready to generate yours?

Answer a few short questions, review the result, and sign up only if you want to save it or export a PDF.

Generate yours free — no signup

Frequently asked questions

Related templates

Independent Contractor Agreement Service Agreement Consulting / Retainer Agreement