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Letter of demand template, with a worked example

A plain-English letter of demand for Australian practice, in Word and PDF with space for your logo. Filled in for two unpaid invoices.

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The template

Formatted for Word, with a box for your logo. Placeholders are [highlighted] so nothing is missed.

Letter of demand template

Your logo

[Firm name]

[Street address], [Suburb] [STATE] [Postcode]

T [Phone] · E [Email]

ABN [ABN]

[Date]

[Recipient name]
[Street address]
[Suburb] [STATE] [Postcode]
By email: [Email]

Our ref
[Matter number]
Contact
[Lawyer name]

Dear [Recipient name],

Letter of demand: $[amount] owing to [Client name]

We act for [Client name]. Our client has instructed us to demand payment of the amount set out below.

1.The amount owing

[How the debt arose: the contract, work or goods, and when payment fell due.]

InvoiceDescription and due dateAmount
[Number][Description], due [date]$[amount]
[Number][Description], due [date]$[amount]
Total$[total]

2.Our client's demand

Our client requires you to pay $[total] by [date]. Please pay to:

Account name
[Account name]
BSB
[BSB]
Account
[Account number]
Reference
[Reference]

3.If you do not pay

If payment is not received by [date], our client has instructed us to [the step your client will take, e.g. commence proceedings to recover the debt, interest and costs] without further notice.

4.If you dispute the amount

If you say that any part of this amount is not owed, please tell us in writing by [date], with your reasons and any documents you rely on.

We recommend that you obtain your own legal advice about this letter.

Yours faithfully,

[Lawyer name]

[Title]

[Firm name]

What is a letter of demand?

A letter of demand asks someone to pay a debt, or do what they owe, by a set date. It says what your client will do if they do not. It is usually the last step before proceedings.

It is not a court document and has no set form. Many debts are paid at this point, and the letter shows a court or tribunal that the other side had a fair chance to pay.

  • Documents

What to include

  • Who you act for

    Your client, and that you are instructed to write.

  • What is owed and why

    One amount, itemised, with the contract, work or invoices it comes from.

  • A deadline

    A date, not ‘promptly’. Seven to fourteen days is common for a debt.

  • How to pay

    Account details or another clear way to pay.

  • What happens next

    The step your client will take if the debt is not paid, and only a step they intend to take.

  • How to dispute it

    A way to raise a genuine dispute, in writing, by the same date.

  • Workflow

How to write a letter of demand

  1. 01

    Check the debt first

    Read the contract and invoices. Confirm what was agreed and what is still unpaid.

  2. 02

    State one amount

    Itemise it. Do not add fees or interest your client is not entitled to.

  3. 03

    Give a date

    A real date gives the other side a clear choice and gives you a clear next step.

  4. 04

    Threaten only what you will do

    Overstating the consequences can be misleading. The ACCC and ASIC debt collection guideline sets out what to avoid.

  5. 05

    Stay factual and polite

    Firm is fine. Pressure that amounts to harassment or coercion is not.

  6. 06

    Keep proof of sending

    You may need to show when the letter was sent and received.

  • Recordings
  • Documents
  • Review

Start from the client’s instructions.

Law Brief records the meeting where your client instructs you and drafts the file note and client letter, in Australia. The amounts, dates and instructions for the demand are written down before you open the precedent.

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2:002:152:302:453:00
AlexConsultation · Alex
2:00 to 2:45
TranscriptTranscript
Ready in seconds
2:45
Letter and noteDella drafts letter and note
Under 5 min
2:49
Next: SamNext client · Sam
11 minutes to spare
3:00

The red bar is the consultation itself: 45 minutes with the client. Everything after it takes Della under 5. The letter and file note are waiting for your lawyer 11 minutes before the next client sits down.

Case study

Live since February at a Sunshine Coast law firm.

  • ~$420Ka year in staff time, from Della
  • 20legal professionals using it
  • 45 → 5minutes per client letter

How we worked it out: about $35,000 a month in staff time, on the firm’s own dashboard.

Also freeCalderbank offer template, with a worked example

Questions.

Checked . General information, not legal advice. Sources: ACCC and ASIC debt collection guideline · Corporations Act 2001, s 459E (statutory demands) · Statutory minimum of $4,000 (2021 regulations)
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Bart Puszko, founder of Blue Seas AI, and Della. Let’s set up your trial.

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