Before You Escalate: Send a Final Demand Letter at No Cost

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Disclaimer: The demand letter generated by this tool is provided by CBC Financial LLC d/b/a CannaBIZ Collects (“CBC”) for informational purposes only and does not constitute legal advice or create an attorney-client relationship. CannaBIZ Collects makes no guarantees about the accuracy, effectiveness, or legal enforceability of the letter. Users are solely responsible for reviewing, customizing, and using the letter and should consult qualified legal counsel licensed in their jurisdiction before taking any action. By using this tool, you agree that CBC and its affiliates are not liable for any outcomes, damages, or disputes resulting from your use of the demand letter, and you waive any related claims against CBC Financial LLC.

Prompt payment from cannabis debtors with a professionally crafted demand letter—free of charge.

When a cannabis company owes you money and continues to delay payment, it's critical to take action. At CannaBIZ Collects, we offer a free, professionally written final demand letter that communicates urgency, outlines the outstanding debt, and clearly states your intent to escalate the matter to collections if it's not resolved.

Why Send a Final In-House Demand Letter?

In the cannabis industry, where payment delays and credit risk are increasingly common, having a formal paper trail matters. A final demand letter documents your communication, establishes a timeline, and puts pressure on the debtor to act. It also protects your business reputation by demonstrating professionalism and fairness.

Before involving a third-party collections agency or taking legal steps, it's essential to make your intentions clear with a formal, in-house demand letter. This letter acts as a final warning, giving your customer one last chance to resolve the debt professionally before things escalate.

Sending a final demand is often enough to prompt payment. It signals you're serious, but still offers the debtor an opportunity to preserve the business relationship. It's also a cost-effective and strategic step that shows you’ve made every reasonable effort to collect, which can strengthen your position if legal or third-party action becomes necessary.

At CannaBIZ Collects, we’ve seen time and again that a well-timed, clear demand letter can prevent further conflict and get you paid—faster.

What's Included in Our Free Demand Letter?

  • Clear statement of the owed amount and due date.

  • Reference to the original agreement or invoice.

  • A specified deadline for payment to avoid further action.

  • Professional tone to preserve business relationships.

Next steps if the debtor doesn’t pay you back:

If the debtor fails to repay their balance after receiving a final demand letter, it’s time to escalate the situation by involving a debt collection agency. Handing the matter over to professionals allows you to focus on growing your business instead of chasing delinquent accounts. Look for an agency that works on a contingency fee basis—meaning you only pay if they successfully recover the debt.

 Further reading on debt recovery.

SUCCESFULLY HANDLING CANNABIS DEBT COLLECTION FOR BUSINESSES —

The cannabis industry is packed with unique operational challenges. Among these challenges, managing debt collection effectively stands out as a critical issue for cannabis companies.

ULTIMATE GUIDE TO SUING A DISPENSARY —

In today’s cannabis industry, business relationships between suppliers, service providers, and dispensaries have become more prevalent and, unfortunately, more prone to disputes. 

HOW TO WRITE A FORMAL DEMAND LETTER —

No one wants to go to court if resolving an issue without litigation is possible. That's why, for most disputes, the negotiation process starts by sending a demand letter.

Need assistance? We are here to help.

If the demand letter doesn't yield results, our team can assist with debt collection services tailored to the cannabis industry.

NO COLLECTION. NO FEE. PERIOD.