Writing a Letter Requesting Money Owed from a Friend [Free Sample]

If you owed moneyand the borrower shows no signs of repaying it, one of the first steps you should take is to send a demand letter for money owed. 

This is a formal letter that clearly states the circumstances for the loan, the required repayment and a suggestion that taking the issue to court may be an option if the debt is not repaid. 

The letter will demonstrate to the borrower you are serious about wanting your money and it will also serve as evidence if the case needs to go to court.  

This letter could be the first step in the legal process of recovering debt. In many cases, especially between friends, a demand letter for money owed is all it takes to remind the borrower that they need to pay their debts.

Be Polite

Demand letters should be polite and not harass the debtor especially if it is going to a family member or friend of the lender. 

They will most probably need to maintain a friendly relationship with the borrower. This is why the letter should simply state the facts and not have an emotional tone.

If the case needs to go to court, any harassment on the part of you will not be viewed favorably. The letter can be firm, but polite with no angry expressions or insults aimed at the borrower.

These could act as a deterrent for the borrower to repay the loan. The appearance of the letter ought to be formal but personal and not resemble an official document in any way. If you have personal stationery, that should be used.

Registered Mail

The letter should be sent by registered mail, so you have proof of sending and receiving. It could also be sent by fax if there is a confirmation of receipt. 

These receipts should be kept. Copies of any contracts, letters of agreement, receipts or invoices that are connected to the loan should be attached to the demand letter.

Clear Description Of The Situation

A clear description of the situation should be stated in the beginning of the letter. Next the letter should state exactly what the borrower wants. 

If the letter is to get a loan repaid, you should state a specific amount of money and give a reasonable due date when they expect the amount to be paid. 

At this point, it can be stated that if the demands aren’t met, you will take the next step and go to court.

Demand Letter For Money Owed From A Friend

Your Name
Your Address
Phone Number
Email Address


Friends’ Name
Friends’ Address

Dear Friends’ Name,

This letter is in regards to a loan that I made to you in the amount of [AMOUNT] on [DATE] for the down payment of your new car. At that time, we agreed that this loan was to be paid in full by [DATE].

As of today, [DATE], you have not given me any payments towards this loan. It has been one year since the loan was to be repaid in full. I request that, on the receipt of this letter, you repay the amount in full.

If I do not receive payment in full before the end of this year, I reserve the right to take further legal action to recover the amount of the loan without further notice to you. This letter may be given in evidence in court of your failure to pay.

If it becomes necessary to go to court, I will expect you to pay the applicable interest, filing and attorney’s fees, and any other related costs. I will be happy to answer any questions you may have if you call me at [555-1234].

Your immediate attention to this matter will be appreciated.


Your Name
List any attachments

Frequently Asked Questions (FAQs)

1. How do I approach my friend about money they owe me?

Answer: It’s best to be direct and clear when requesting money from a friend. You can say something like “Hey, I just wanted to remind you that you owe me $X for [reason for the loan]. Can we figure out a way for you to pay me back?” It’s important to remain calm and respectful in your approach.

2. Can I take legal action against a friend who owes me money?

Answer: It’s possible to take legal action against a friend who owes you money, but it’s generally not a good idea as it can ruin the friendship. It’s better to try to resolve the issue through open communication and negotiation.

3. What should I do if my friend is avoiding me after they owe me money?

Answer: If your friend is avoiding you after they owe you money, it’s important to be patient and understanding. You can try to reach out to them again and express your concerns. If they continue to avoid you, it may be best to let them know that you expect them to fulfill their obligation and to pay you back.

4. How do I know if my friend is capable of paying me back?

Answer: You can ask your friend about their current financial situation and if they can pay you back. It’s important to be respectful and understanding, but also to make sure that you are reimbursed for the money you loaned.

5. What should I do if my friend can’t pay me back?

Answer: If your friend can’t pay you back, it’s important to have an open and honest conversation with them. You may want to consider negotiating a payment plan or finding another solution that works for both of you. Remember that the most important thing is to maintain the friendship, so try to be understanding and flexible.

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