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A demand letter for payment is a notice requesting payment from a debtor for an amount owed by a specific date. It serves as a final warning before legal action. Sending this letter is important as it alerts the debtor, records the reason for payment, informs of the amount owed, requests payment by a due date, and provides a written record for potential legal disputes. It can also be used to offer a reduced settlement. Get a free template for a demand letter for payment.