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Letter of Demand

Why and what

They say money makes the world go around and no one understands that better than a business owner.


Having someone owe you money can put your business in a difficult position affecting cash flow, wages and supplier payments. No one enjoys making debtor calls and particularly those that are not returned.


After repeated attempts to contact debtors who have put their head in the sand, you may be tempted to engage debt collection agencies or even initiate formal court proceedings. However, these processes are not only expensive, they can be prolonged for months or even years with no guarantee of a successful outcome.


So you have tried calls and emails – what next? A Letter of Demand is a formal escalation of the matter, requesting payment when invoices, statements and phone calls have fallen on deaf ears. It formalises the matter, acts as a final warning and allows you to officially notify the debtor that you intend to commence legal proceedings if payment isn’t made.


Not sure how to write a Letter of Demand? GoldDocs can help. We provide a short questionnaire that populates a standard Letter of Demand ready to send to your elusive debtor in minutes. Send a strong message without having to get a lawyer involved. 


Of course, if this formal demand letter still doesn’t elicit a response or payment, feel free to get in touch with us and we’ll help you take the matter further.

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