A Letter of Demand is an official document that is used to issue a formal demand to an individual or business that 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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