Letter of demand template
A letter of demand is a formal written request for an overdue invoice to be paid by a set date. Fill in your details and pick your state. Copy it or print it.
Your letter
Coastline Electrical Pty Ltd 14 November 2026 Jess Nguyen LETTER OF DEMAND Invoice 2231: $2,140 overdue Dear Jess Nguyen, Our records show that invoice 2231 for $2,140 was due for payment on 1 March 2026 and remains unpaid, despite our earlier reminders. We ask that you pay the full amount of $2,140 within 7 days of the date of this letter. You can pay by: bank transfer to BSB 000 000, account 0000 0000, or the link on the invoice. If you believe this amount is wrong, or there is a problem with the work or goods, please contact us straight away so we can sort it out. If you are having trouble paying, please talk to us about it. If we don't receive payment or hear from you within 7 days, we may consider recovering the debt through the Local Court of NSW (Small Claims Division). We would prefer to resolve this directly with you. Yours sincerely, Sam Taylor Coastline Electrical Pty Ltd
Nothing you type is sent or saved. The letter is made in your browser.
When to send a letter of demand
Send one after your reminders, calls and texts haven't worked, usually a few weeks after the due date. It puts the request in writing, gives a clear deadline and shows you tried to sort it out before taking formal steps. Check the invoice is right and the amount isn't in dispute first.
How to send it
- Fill in your details. Add your business, the customer, the invoice number, amount, due date and how to pay.
- Check the letter. Read it through and make sure every detail is correct. Only include interest if your customer agreed to it.
- Send it. Email it, post it, or both. Keep a copy and note the date you sent it.
- Follow up. If the deadline passes, call the customer, then consider your state's small claims process or get advice.
Keep it fair
The ACCC and ASIC debt collection guideline says not to mislead, harass or threaten action you don't intend to take. This template sticks to the facts, invites the customer to raise problems and doesn't mention credit reporting.
If it's ignored
In New South Wales, small debts are usually claimed through Local Court of NSW (Small Claims Division). Check its website for the current claim limit, fees and forms. If the customer is a company and owes $4,000 or more, a statutory demand may be an option, but get advice first. Read our statutory demands guide. Tradies may also have rights under security of payment laws. The Small Business Ombudsman can help with disputes between businesses.
Sources
- ACCC and ASIC debt collection guideline (RG 96)
- Local Court of NSW (Small Claims Division)
- business.gov.au: payments and invoicing
- Australian Small Business and Family Enterprise Ombudsman
Last checked 6 November 2026.
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