Debt Acknowledgement Letter Template

Debt Acknowledgement Letter — Template

[Date]

To: [Creditor Business Name]
[Creditor Address]
Attention: [Contact Name / Accounts Receivable Team]

Re: Acknowledgement of Debt — [Invoice Number(s) / Account Reference]

Dear [Contact Name / "To Whom It May Concern"],

I, [Debtor Full Name], [Director / Partner / Sole Trader] of [Debtor Business Name] (ABN / ACN [Debtor ABN/ACN]) ("the Debtor"), write on behalf of the Debtor to acknowledge the following:

1. Acknowledgement of Debt
The Debtor acknowledges and accepts that it owes [Your Business Name] ("the Creditor") the total amount of $[Total Amount Owed] (inclusive of GST where applicable) in respect of [description of goods/services, e.g., "goods supplied under invoice number [X] dated [Y]" or "services rendered between [start date] and [end date]"]. The Debtor confirms that this debt is not disputed.

2. Agreed Payment Arrangement
[CHOOSE ONE — delete the other]

Option A — Payment in full:
The Debtor undertakes to pay the full outstanding amount of $[Amount] by [Date]. Payment will be made by EFT to the Creditor's nominated bank account.

Option B — Payment by instalments:
The Debtor undertakes to pay the outstanding amount by the following instalments:

Instalment 1: $[Amount] by [Date]
Instalment 2: $[Amount] by [Date]
Instalment 3: $[Amount] by [Date]
[Add further instalments as required]
Total: $[Total Amount Owed]

All payments to be made by EFT to: Bank: [Bank]   BSB: [BSB]   Account: [Account Number]   Reference: [Invoice / Account Number]

3. Consequences of Default
The Debtor acknowledges that if any payment is not made on or before its due date, the Creditor is entitled to immediately pursue recovery of the full outstanding balance without further notice, including by engaging a debt recovery agency or commencing legal proceedings. The Debtor agrees to be liable for all reasonable costs of recovery.

4. Effect on Limitation Period
The Debtor acknowledges that this letter constitutes an acknowledgement of the debt in writing for the purposes of applicable limitation legislation, and that the limitation period for the Creditor to commence proceedings may be reset from the date of this acknowledgement.

5. No Waiver
This acknowledgement does not release the Debtor from any interest, late fees, or other amounts owing under the Creditor's terms of trade. The Creditor's agreement to accept payment by instalments (if applicable) does not waive any other right or remedy.

SIGNED

Signed by the Debtor:

Signature: _____________________________ Date: ___________
Full Name: ____________________________
Position: _____________________________
Company Name: ________________________
ABN / ACN: ____________________________

Witnessed by:
Signature: _____________________________ Date: ___________
Full Name: ____________________________
[Optional — not required but adds evidential weight]