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Most small-claims courts expect you to have tried resolving the dispute before filing, and the demand letter is the proof. In court it becomes exhibit A: judges look for a clear demand, a reasonable payment deadline, and proof it was actually sent. Sent by tracked mail with a copy kept, it strengthens your case before you say a word.
This is general information, not legal advice.
Small claims is built for disputes that shouldn't need a courtroom. Many courts' filing instructions, and some clerks directly: ask whether you tried to settle first. Showing up with a written demand proves you did, and it frames you as reasonable. Showing up without one can make a straightforward claim look premature. The letter also pins down your position early: the amount, the reason, and the date you asked: all useful when memories differ months later.
| Element | What works |
|---|---|
| Who and what | Name the other party exactly as on the contract: if it's an LLC, name the business, not just the owner personally, or the demand may not attach to the right entity. |
| The facts, briefly | Two or three sentences: what happened, when, what you paid or lost. Factual, no insults. |
| The exact amount | A specific dollar figure with the math shown. "You owe me $850" beats "you owe me money." |
| A deadline | A reasonable one: 10 to 30 days is typical. An unreasonably short fuse can make you look like the difficult party. |
| The consequence | A plain statement that you'll file in small claims if the deadline passes. No threats beyond that. |
By tracked mail: certified in the US, registered in Canada, and keep the receipt. Proof of sending is what turns "I asked them" into "here is when I asked them." LetterAgent's registered option gives you the tracking and proof-of-delivery record. A common add-on: mail the same letter by regular post the same day, so a refused tracked letter doesn't mean they never saw the demand at all.
Two copies of the letter and the proof of sending: one set for the judge, one for the other side. Keep the original mailing receipt clipped to your copy. Judges see a lot of "I sent a letter" claims; the people who pull out the letter and the receipt together are the ones believed. Note the exact date you mailed it and the deadline you gave: if the deadline passed with no payment, that timeline is part of your case.
Good: that was the point. A partial offer or a payment plan is often a better outcome than a judgment you still have to collect. If they dispute the facts, you now know their side before the hearing, which is an advantage. Put any agreement in writing and keep copies the same way you kept the demand. If they respond with a lawyer's letter, read it calmly and consider getting your own advice: it doesn't change your claim, it just raises the stakes.
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