Letter of Demand Template

When It Applies

Not For

• Threatening criminal action, harassment, unlawful debt-collection pressure, or misleading claims.
• Consumer-credit, prescription, insolvency, eviction, employment, or complex contract disputes without legal advice.

Documents

• Contract
• Invoices
• Statements
• Delivery notes
• Proof of work
• Payment proof
• Correspondence
• Acknowledgement of debt
• Debtor details
• Prior reminders
• Delivery proof

Timeline

• Before drafting: verify debtor identity, amount, contract, and proof.
• Before sending: check deadline, tone, delivery method, and legal-risk issues.
• After sending: record delivery and responses.
• After deadline: decide on settlement, escalation, or summons.

Tips

• State facts and requested action clearly.
• Keep a sent PDF copy that cannot be accidentally edited.
• Do not threaten steps you cannot lawfully take.
• Get advice if the debt is old, disputed, consumer-credit related, or large enough to justify litigation costs.

Warning Signs

• The amount is disputed.
• The debt may be prescribed.
• The debtor is insolvent or under business rescue.
• The agreement has a special notice, mediation, arbitration, or jurisdiction clause.