Before we go into the nitty-gritty of writing a demand letter, it necessary to state the importance of same in cases of settling disputes arising from payment.

In cases where dialogue failsone may decide not to mediate on resolution, then a demand letter is necessary.It is a commonplace for courts to require the plaintiff to write a demand letter for payment. And if this is not required, it is sensible to do such. For the first reason, in one-third of all disputes, the demand letter serves as a speed-up to settlement. And also, if no settlement is reached, then it affords the creditor to file his or her case in an organized way before the judge and his court. Better still, one has an evidence permissible in court if the case is not resolved.
Oftentimes, individuals do not want to make small claims case. They may not want to file their small claims case in the first place. Rather, these people have to write the other party a clear, concise letter demanding payment. From there, the letter itself or conversations it engendered, enabled them receive all, or at least a significant part of their demand.

One thinking at first that the demand letter can be so effective may at first seem paradoxical, especially if you have already unsuccessfully argued with your adversary in person or over the phone. In order to understand the essence of the written word and how so much effective it can be, then one has to visualize many times one has been engaged in tough dispute. After the exchange of threats of lawsuit (especially from the offended) nothing seems to happen. Therefore, defendants take such threat with a pinch of salt and may never want to do the needful.
The case is different with writing a demand letter, clearly stating why the debtor can indeed be sued in a small claims court if a desired behavioural response is not engendered.

For real, the offender is left with no option other than think twice of his or her earlier recalcitrant behaviour for fear of a lawsuit. Hence, a lot would be committed to proper reasoning the pains of settling in court or the ease of doing same out of court. This would have given a bit of credence to whoever is making the claims and put the offender on his or toes for a quick settlement, whichever way, gradually or at once.
And it is not always the rule that one must be fetched a letter requesting for payment. A simple past-due notice form from a creditor is enough or an oral asking.

Composing Your Demand Letter
The key points to note in writing a demand letter are as follows:
Typing the letter is necessary. It is a formal document and meant for formal purpose, then it must be presentable in an acceptable format.
A concise review of the main facts of the dispute is needed. In court, recourse is made to organized presentation of issues, events and the likes for documentation. So, it is the duty of the creditor or plaintiff, whichever is applicable, to have a stated record of what had transpired between the parties involved in the dispute- how many times his calls to the defendant were not answered; the number of times he promised and failed to fulfil it.It is very necessary because it is only an organized thought in the form writing that will appeal more to the court other than haphazard and disjointed claims.

Be Polite. It is responsible of the claimant to try not to verbally assault his offender, if he or she deserves it. This could degenerate and more issues capable of jeopardizing one’s chances of having a better share.
Write with your goal in mind. The letter should encourage your opponent to make a business-like analysis of the dispute and raise such questions as

What are my risks of losing?
How much time will a defense take?
Do I want the dispute to be decided in public?
It is needful one states that the pursuit of a legal redress is an option if the demands are not met. The offender should be reminded of the implication of an adverse judgement could have on his or her credit rating.
Make and keep copies. In order to have a good case, there is need to compile a detailed record of copies of correspondence earlier sent or received.

Use certified mail. Ensure the demand letter is sent via certified mail with a proof of return receipt.So if anything falls apart, the need to go to court arises, then this can be used to oppose any frivolous claims of non-receipt.