Letter of Demand Template

Letter of Demand — Template

[Your Business Name]
[Your ABN / ACN]
[Your Business Address]
[Your Phone]
[Your Email]
[Date]

[Debtor Business Name]
[Debtor ABN / ACN if known]
[Debtor Business Address]

LETTER OF DEMAND

Re: Outstanding Invoice [Invoice Number] — $[Amount]

Dear [Director's Name / "To Whom It May Concern"],

We refer to our invoice number [Invoice Number] dated [Invoice Date], for the amount of $[Invoice Amount] (inclusive of GST), in respect of [brief description of goods/services supplied, e.g., "electrical contracting services provided at [address] between [start date] and [end date]"]. Payment was due on [Due Date].

Despite our previous attempts to contact you — including [a reminder dated X / phone calls on X and Y / your email of X] — the above amount remains outstanding. As at the date of this letter, the total amount owed is:

Invoice amount:                             $[Amount]
Interest accrued ([Rate]% p.a. from [Date]):  $[Interest — use our interest calculator]
Total amount now outstanding:         $[Total]

We demand payment in full of $[Total] within seven (7) days of the date of this letter — that is, by [Due Date + 7 days].

Payment should be made to:
Bank: [Bank Name]
BSB: [BSB]
Account Number: [Account Number]
Account Name: [Your Business Name]
Reference: Invoice [Invoice Number]

Please be advised that if payment is not received by the date specified above, we will, without further notice:

• Refer this matter to a commercial debt recovery agency and/or our legal representatives;
• Seek recovery of the outstanding amount plus any accrued interest, collection costs, and legal costs as permitted by our terms of trade and/or applicable law;
• Record the default with applicable credit reporting bodies where applicable.

Our terms of trade specify that interest accrues on overdue amounts at [Rate]% per annum and that reasonable collection costs are recoverable. We note that this matter may be resolved quickly and without further cost to either party if payment is made by the due date.

If you believe this invoice is in error, or if you wish to discuss a payment arrangement, please contact us immediately on [Your Phone] or [Your Email]. We are willing to discuss a reasonable payment plan, provided you contact us before the payment deadline.

We trust that your prompt attention to this matter will avoid the need for further action.

Yours faithfully,

[Your Full Name]
[Your Title]
[Your Business Name]