Glossary

    What is letter of demand?

    A letter of demand is a formal written request to pay a debt by a set date, before taking further action.

    It sets out what's owed, why, the deadline and what you may do next, such as lodging a small claim. It's often the last step before a court or tribunal.

    Example

    "Please pay $2,400 for invoice 1043 by 30 June. If it isn't paid, we may lodge a claim with NCAT."

    In Australia

    Each state and territory has its own small claims court or tribunal. Keep the wording factual and avoid threats.

    General information only, not legal or financial advice.

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