A Letter of Demand is an important step in the debt recovery process. You usually send this letter after you have approached the debtor to repay the debt and they still are not paying.
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This Letter of Demand template
will allow you to complete the template yourself and send it
directly to the person who owes you the debt (the debtor). It is an
effective tool to remind the debtor of the outstanding payment
before legal action is taken.
This template is drafted as a
demand letter for payment, also known as a debt collection letter.
You will need to complete the following fields in the template:
Debtor’s name and address (or
contact information)
Amount owing
Description of services or
goods
Deadline for outstanding
payment
You should use this template on
your business letterhead.
When sending this letter of
demand, ensure that you do the following:
try to elicit payment by calling
and sending reminders before sending a letter of demand;
if that fails, draft a letter
using this template clearly stating the debt due, including any
interest owed (if applicable);
clearly state in the letter that
you intend to take legal action if they do not pay the debt;
clearly state in the letter how
the debtor can pay the debt;
give a clear date in the letter
by which you expect them to pay the debt; and
attach all relevant supporting
documents, including any relevant invoices.
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