Do you have a customer that just isn’t responding to your invoice reminders? Tried everything you can think of – email, phone calls, SMS reminders? It sounds like it’s time to step things up a notch. A letter of demand gives your customer one final opportunity to pay that invoice, or agree to a payment plan, before you start legal action. So you don’t have to spend any more time than necessary getting this sorted, we’ve created a free letter of demand template you can download below.
What is a Letter of Demand?
A letter of demand (or a ‘demand letter’ or ‘letter before claim’) is a letter which states your legal claim to payment for the services or goods you’ve contractually provided.
When to use a letter of demand?
You don’t want to jump to a letter of demand too soon. A strong accounts receivable process will have you first send a series of well-timed invoice reminders to the customer in question. To have the highest likelihood of getting paid using different channels such as email, phone calls and SMS reminders is important. If you’ve reached the point where the invoice is four weeks overdue and the client is making no attempts to pay or discuss a payment plan with you, then now is a good time to reach for a letter of demand.
So, what now?
If you’ve reached this point, it can be difficult. Confrontation with customers can be hard. Cash flow is crucial to business success though. And if you’ve provided the product or services agreed, then you have a right to be paid. A letter of demand is quick to draft and can be written by anyone. There are three key things you’ll need to include:
- Details of the overdue account
- Your contact details
- A copy of the original invoice(s)
Grab what you need and take that next step now. Click below to download our free letter of demand template.
Debtor Daddy helps businesses of all sizes worldwide automate their AR from automated reminder workflows through to integrated payment portals and one-click debt collection. If you’re looking to smooth your cashflow, save time chasing unpaid accounts and generally make your life easier we’d love to have a chat.