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Letter of Demand

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What is it?

A Letter of Demand is an official document that is used to issue a formal demand to an individual or business who owes you money for an outstanding debt or invoice. In Australia, issuing a Letter of Demand is the first formal step a creditor takes when they decide to escalate their matter in order to settle a debt.

When do you need it?

A Letter of Demand is issued after a creditor’s first and second reminder letters to the debtor has gone unanswered. So, before you decide to use this document, make sure you have sent the appropriate reminders to your clients.

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Debtors Details

Actual Layout of the Letter

[letter-date]

[business-name]

[full-name]

[address]

[address2]

Dear [full-name],

Your account has gone beyond the usual terms offered by us. We assume this is an oversight and request immediate payment of $[amount].

Your urgent attention to this matter will stop further action which may include referral to a debt collection agency or legal action.

We require immediate payment direct to our office by [payment-date] in order to suspend further action, if you are not able to pay the amount in full or wish to discuss the account please contact our office immediately.

Yours Faithfully

[business-name]

[telephone-num]

[email-address]