Letter of Demand Template

The lowest-risk, most straightforward step in chasing an unpaid invoice. A letter of demand has no mandated legal form, so a well-structured template is genuinely usable as-is.

The Template

[Your Business Name]
[ABN]
[Address]
[Date]

[Debtor's Legal Name]
[Debtor's Address]

RE: LETTER OF DEMAND — OUTSTANDING PAYMENT OF $[TOTAL AMOUNT]

Dear [Debtor Name / "Sir or Madam"],

BACKGROUND
On [supply date], we provided [goods/services] to you in accordance with
[invoice / purchase order / agreement dated ___]. Invoice number [#] for
$[amount] was issued on [date] and payment was due on [due date].

AMOUNT OWING
  Invoice [#]        [date]        $[amount]
  Invoice [#]        [date]        $[amount]
  [Late payment interest / fees, if contractually agreed]     $[amount]
  TOTAL OUTSTANDING                                            $[amount]

Despite [reminder sent on ___ / follow-up call on ___], this amount remains
unpaid as of the date of this letter.

DEMAND FOR PAYMENT
We require payment in full of $[total amount] within [7–14] days of the date
of this letter, being no later than [date].

Payment can be made to:
  Account name: [ ]
  BSB: [ ]      Account number: [ ]
  Reference: [invoice number]

CONSEQUENCES OF NON-PAYMENT
If payment is not received by the above date, we will consider further
action without further notice, which may include referring this matter to
a debt collection agency and/or commencing legal proceedings, in which case
we will seek to recover this debt plus any additional costs allowable by law.

We would prefer to resolve this matter without escalation. If you dispute
this amount or wish to discuss a payment arrangement, contact [name] on
[phone/email] before the above date.

Yours faithfully,
[Name]
[Position]
[Business Name]

Pricing for the finished, editable version of this template is still being finalised.

How to Use It

Confirm the debtor's correct legal name and entity type before sending, a letter addressed to the wrong entity weakens everything that follows it, including a later statutory demand.
Keep the tone factual, not emotional, this is a business record, and a measured letter reads as more credible if it's ever relied on later.
7–14 days is the standard reasonable deadline; shorter reads as aggressive, longer signals the debt isn't urgent.
Attach copies of the original invoice(s) and any signed agreement or purchase order.
Send by a traceable method, email with read receipt and/or registered post, and keep proof of sending and delivery.

This is an informational template and general guidance only, not legal advice. We recommend independent legal review before relying on it.

Not Sure This Is the Right Path?

If the debt is larger, older, or the debtor's gone quiet, run the Free Check first, it's free either way.

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