Download Letter Of Demand - ATA Australian Trades Association

Letter of Demand
Instructions to Proceed:

If available, insert your company’s logo or stationary header at top of the letter

Offer 7 to 14 days for payment.

Be prepared to take legal action if the debtor refuses to pay; or offer a suitable compromise.

If you do not want to proceed with legal action, then we recommend partnering with a debt recovery
organisation.

Keep a copy of the completed signed letter, just in case it needs to be presented in court.

If negotiating a compromise, insert ‘Without prejudice’ at the top of any documentation you send as this
implies that you do not give up the right to sue for the full amount if a satisfactory compromise is not met.

Send the Final Notice Letter by registered post, fax or email.
Sample Negotiation Letter:
“Without prejudice to my rights for full recovery of the debt, I am prepared to accept the amount of $
discounted amount as full and final settlement of the debt if paid within
days from the date of this
letter.”
Or you might offer a payment plan over a period of a few months, offering suggested amounts that can be paid
directly into your account weekly or monthly on specified agreed dates.
Disclaimer:
The information in the following pages is of a general nature and does not constitute, and should be not relied
on a legal advice. ATA Australian Trades Association recommends seeking advice from a qualified lawyer or
your legal matter to obtain advice relevant to your case. ATA Australian Trades Association is not liable for any
loss suffered as a result of or in relation to the use of the information provided.
Contractor’s Company Name
Address
ABN #
T: Phone #
E: Email Address
Date: 00/00/0000
Builder’s Company Name
Address
ABN #
Attention: Builder’s Name
Letter of Demand (Invoice: # 0000, Dated: 00/00/0000)
I draw your attention to the above invoice that to date remains unpaid. Despite numerous attempts to contact
your account department through reminder telephone calls and repeated invoices sent / emailed to you, your
debt for the account remains unpaid.
We advise that if payment is not received for the amount of $
within
days from the date of
this letter, we will commence legal proceedings to recover the debt without further notice. Please note, you will
be liable for any legal cost incurred and disbursements. This letter may be tendered in court as evidence of your
failure to pay.
As you are a valued customer, we have been reluctant to take this action and hope that payment can be made
immediately.
Yours sincerely,
Signature of Contractor
Contactor’s Name