I’m trying to figure out how to handle a client who’s been dragging their feet on a final payment for a completed project. We had a simple agreement in place, but it didn’t spell out late fees or what happens if they just stop responding. I’m wondering if I should send a more formal demand letter before considering anything else, and what usually goes into one that actually gets their attention.
I would send a demand letter that stays firm but polite. It should name you and the client, reference the project and the due amount, and set a clear final date for payment. Keep the tone professional and avoid threats, just state the consequences of nonpayment and your next steps.
It can feel stiff but a well written demand letter often moves things along faster than a casual note. You might include a simple option for a short payment plan if cash flow is the issue, and a firm deadline for the balance.
Before you draft it gather everything you have the contract the final invoice the acceptance emails. A demand letter that references those documents shows you are serious and reduces back and forth. If nothing changes you can map out the next steps like small claims or a collections route.
I would not over promise in a demand letter you want to keep leverage but not burn a bridge. The letter should focus on the amount owed the dates and a clear deadline and mention what happens if they still do not respond such as escalation or a release of claims once payment is received.
Another angle is to reframe the issue as closing the project well rather than pushing for money alone. A demand letter can lay out the closing terms include payment and a mutual release if needed and then you wait for their reply.
Keep it short like a note you could drop in their inbox today. Balance due the project name and a firm date. No legalese just the facts and a request for payment by the deadline.
Do you want to attach a late fee or interest if the contract does not state them and risk pushback, or would you rather propose a payment plan in the demand letter and keep the door open for future work?