Letter-of-Demand-Template | LegalVision

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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What’s included?

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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