ClauseryFree payment demand letter template (Word)
A firm but polite letter asking a customer to pay an overdue balance by a deadline, with optional invoice number, interest and next steps.
No sign-up. Your answers stay in your browser. Who it is for: Small businesses, freelancers and bookkeepers chasing late invoices.
Updated · Word (.docx) · Free to use and adapt
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What is in the payment demand letter
- Debtor details and amount due
- What the payment was for and when it was due
- Pay-by date and payment instructions
- Optional interest
- Invitation to dispute or agree a payment plan
- Optional next steps
Read the full template
This is the complete wording. [Labels] are filled in from your answers, and highlighted text only appears when it applies; hover over it to see when.
DEMAND FOR PAYMENT
[Letter date]
[Debtor name]
[Debtor address]
Re: Outstanding balance of [Amount due] (invoice [Invoice number])
Dear [Debtor salutation],
Our records show that [Amount due] for [Goods or services] provided by [Creditor name] was due on [Due date] and remains unpaid.
Please pay the full amount by [Pay by date]. [Payment instructions]
Under the terms agreed between us, interest of [Interest rate] is being added to the overdue balance.
If you have already paid, please disregard this letter and send us the payment details so we can update our records. If you believe the amount is not owed, or you would like to agree a payment plan, please contact [Contact name] at [Contact email] before [Pay by date].
If we do not receive payment or hear from you by that date, we may take further steps to recover the debt, which may include [Next steps].
Sincerely,
[Contact name]
[Creditor name]
The questions you answer
Clausery turns the template into a short questionnaire. Optional parts only appear when they apply.
| Question | Type | Asked when |
|---|---|---|
| Letter date | Date | Always |
| Debtor name | Short text | Always |
| Debtor address | Long text | Always |
| Amount due | Money | Always |
| Has invoice number | Yes / no | Always |
| Invoice number | Short text | If “Has invoice number” is yes |
| Debtor salutation | Short text | Always |
| Goods or services | Short text | Always |
| Creditor name | Short text | Always |
| Due date | Date | Always |
| Pay by date | Date | Always |
| Payment instructions | Long text | Always |
| Charges interest | Yes / no | Always |
| Interest rate | Short text | If “Charges interest” is yes |
| Contact name | Short text | Always |
| Contact email | Always | |
| Mention next steps | Yes / no | Always |
| Next steps | Long text | If “Mention next steps” is yes |
How to use it
Open it
Click Fill it in now. The template opens in Clausery with its questionnaire ready.
Answer the questions
Work through the sections. Drafts save as you type, on your device.
Download the document
Get a finished Word file with your formatting intact, or print it to PDF.
Prefer to start from your own wording? Download the Word file, edit it, keep the {tags}, and upload it to Clausery. See the template syntax.
Questions
Is this a formal letter before action?
No. Some courts require specific pre-action steps and wording; check your local rules before starting proceedings.
Can I send it by email?
Yes. Download the Word file or print it to PDF and attach it.
Is it really free?
Yes. The download is free, and filling it in with the Clausery app is free too, with unlimited documents. Library templates never count towards a plan limit, and no account or card is needed.
Is my information uploaded anywhere?
No. Clausery runs entirely in your browser. Your answers and the finished document are created and stored on your own device.
Is this legal advice?
No. These are general samples. Laws differ between countries and states, so have the wording reviewed for your situation before you rely on it.
Clauses in this template, explained
Guide: How to write a demand letter for unpaid invoices
Free tool: Late payment interest calculator
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This template is a general sample and not legal advice. Laws vary by jurisdiction; have it reviewed before use.