Reasons for a Demand Letter
The simple reason that you need a demand letter is to let the other side know that you
are serious in your desire for payment. Many times the people that owe you money think
that you won't seriously go after them for payment. However, their feelings and thoughts
often change after receiving a demand letter that sets out the reasons why you feel that
you deserve payment and states that if you do not receive what is owed to you, you plan
on going to court.
The demand letter is often the first time that the other party will realize that you are
serious about collecting the money that is due to you and that you will take it to court if
need be. In addition, the other party may finally realize that if they do not pay up, they
will have to spend time and money to publicly defend their position.
The Structure of a Demand Letter
1. Lay Out Your Reasons -- The first thing that you should do in a demand letter is
lay out what happened. This may seem strange to you be