What is a Freelancer Demand Letter?

A demand letter is a formal written request for payment that serves as a final notice before legal action. For freelancers facing nonpayment, it's often the most effective way to collect what you're owed without going to court. A well-crafted demand letter demonstrates you're serious about collecting, documents your claim, and gives the client one last chance to pay before facing legal consequences.

Why Demand Letters Work

Demand letters are effective for several reasons:

• Creates a paper trail — Documents your attempts to collect before escalating
• Signals seriousness — Shows you're willing to pursue legal remedies
• Preserves relationships — Gives clients a face-saving way to resolve the dispute
• Required for small claims — Many courts require proof you attempted resolution first
• Cost-effective — A letter costs nothing; lawsuits cost time and money

What to Include in Your Demand Letter

An effective demand letter should contain:

• Clear identification — Your name, business, and contact information
• Amount owed — The exact sum including any interest or late fees per your contract
• Work description — What you delivered and when
• Invoice history — Dates of invoices sent and payment attempts
• Deadline — A specific date for payment (typically 10-14 days)
• Consequences — What happens if they don't pay (small claims, collections, etc.)

After Sending the Demand Letter

Send your demand letter via email with read receipt and certified mail. Keep copies of everything. If the client doesn't respond by your deadline, you have several options: file in small claims court (limits vary by state from $5,000 to $25,000), hire a collections agency, report to credit bureaus, or consult an attorney for larger amounts. Many clients pay after receiving a formal demand—the letter alone resolves most disputes.

Small Claims Court Limits by State

Common state small claims limits:

• California: $12,500 (individuals), $6,250 (businesses)
• New York: $10,000
• Texas: $20,000
• Florida: $8,000
• Delaware: $25,000

For amounts above these limits, you may need to file in regular civil court or accept the limit and waive the excess. This generator creates a professional demand letter that can be used as evidence if you do proceed to court.