Letter of Demand Template

A letter of demand can be used when you’re owed money and have made previous requests to receive it without any luck. It’s stepping up your efforts in a more serious manner to encourage the other party to pay.⠀

You can send a letter of demand yourself or request a lawyer to do so.⠀

Here are some tips for drafting your own letter of demand:⠀

– Send at least 2x reminder letters beforehand. Sometimes there are reasonable circumstances for why a payment is late.⠀
– State how much is owed, what for, and when payment is expected by.⠀
– You can also include that you will take further legal action if the payment is not received by the due date.⠀
– Ensure the letter is addressed to the correct person in the business responsible for paying you.⠀
– If your initial contract of business together outlines penalties/fees for late payments, you may include a reminder of this as well and/or add any additional fees to the outstanding amount.⠀-

Using a lawyer to draft a letter of demand, or requesting your draft letter to be included on a lawyer’s letterhead, can encourage the debtor to pay the outstanding amount more promptly as it shows you’re taking the matter seriously.⠀

If you need our assistance writing a letter of demand, get in touch with our friendly team here.

Check out this ‘Letter of Demand Template’ from Business.Gov.Au below. You can also visit their website here for more information on writing your own Letter of Demand. Make sure to save or share this blog article for future reference if you ever need to send your own Letter of Demand.

Letter of Demand Template

[your business name, address and contact details]

[hirer’s name and business address]

Dear [name of hirer]

I am writing in relation to the amount of $[amount ‘including GST’]. According to my records this was due to be paid by you on [date] and remains outstanding. My requests for payment are listed below.

The amount relates to [description of services] provided to you at your request, on [date].

Please find enclosed a dated copy of the invoice and note that it specifies [describe payment terms and instructions]. I have also enclosed the following documents:

  1. [name of document]

  2. [name of document]

[documents may include previous requests for payment and list and enclose any other relevant documents that support your claim for the amount owing].

Please be advised that I demand payment of the invoiced amount [plus an amount of $(amount) for late payment interest as agreed in our contract dated {date}] within seven days of the date of this letter.

Late payment interest: The total amount owed may include late payment interest only if your written contract contains a late payment interest clause.

Payment should be made by [describe manner in which you would like to receive payment i.e bank account for deposit or address for cheque to be posted].

If payment is not received within seven days of this letter I reserve the right to take legal action to recover the monies without further notice to you.

Yours sincerely


[your name and title]