Collect the money you are owed with a Letter of Demand
A Letter of Demand is a formal written notice sent to someone who owes you money, requesting payment of an outstanding debt. It serves as the final step before commencing legal proceedings and demonstrates your reasonable attempts to resolve the matter before court action.
Important Considerations
– Not suitable for building contracts or other specialized agreements that have specific statutory dispute resolution processes
– Validate all invoices thoroughly before sending to ensure they were correctly issued
– Verify payment terms align with your contractual agreements
When to Use This Template
Send a Letter of Demand when:
– Payment reminders have been unsuccessful
– The debt is overdue
– Informal collection attempts have failed
– You’re prepared to take legal action if necessary
Required Information
Debtor Information
– Full legal name or registered business name
– Complete postal address
– Email address
Debt Details
– Outstanding invoice numbers
– Total amount owed
– Name of the agreement the debtor entered with your business (e.g. Services Agreement)
– Brief description of goods/services provided
Using the Template
Our automated system will:
1. Generate a professional Letter of Demand using your business details
2. Include a standard 7-day payment deadline
3. Format the document ready to be placed on your letterhead
Next Steps
After generating your Letter of Demand:
1. Place it on your business letterhead
2. Send to the debtor via email
3. Post a hard copy to the debtor’s address
4. Keep records of when and how you sent the letter
The template automatically includes appropriate legal language and payment terms. Once generated, you can modify the document to suit your specific circumstances.
When to Talk to a Lawyer or Get a Quote
While our Letter of Demand template provides a solid starting point for debt collection, there may be situations where additional guidance is necessary. You should Talk to a Lawyer or Get a Quote if you:
1. Need to recover a substantial debt amount
2. Have complex payment disputes or multiple related debts
3. Face a debtor who disputes the debt’s validity
4. Deal with a debtor who has become insolvent or entered administration
5. Require strategic advice on debt recovery options
6. Need assistance with enforcement after the demand period expires
Legal Support
We recommend consulting a lawyer if you:
– Want to explore additional debt recovery strategies
– Need advice on interest calculations and enforcement options
– Require assistance with subsequent legal proceedings
– Have concerns about the debtor’s ability to pay
– Need to negotiate a payment plan
– Want to ensure your debt recovery approach aligns with your broader commercial objectives
Professional legal advice will help protect your interests and maximize your chances of successful debt recovery while ensuring compliance with relevant laws and regulations.
