Letter of Demand
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Letter of demand: how we help
Navigating the intricate world of business transactions can make recovering owed funds a daunting task. We recognise the challenges that Australian business owners encounter when dealing with clients or partners who fail to meet payment obligations.
Our dedicated letter of demand service serves as a reliable solution, providing you with a powerful tool to tackle these financial challenges. We draft carefully tailored letters, ensuring a blend of professionalism and effectiveness.
Backed by a deep understanding of business laws, we handle negotiations to work towards achieving the results you desire. Request our advice today.
We provide tailored letters of demand for your unique circumstances
The power of a letter of demand: all you need to know
In the world of business, it’s not uncommon to find yourself facing situations where clients, customers, or partners owe you money for products or services rendered. When these financial matters go unresolved, it can disrupt your cash flow and impact your business’s overall health.
This is where a Letter of Demand comes into play, and at Progressive Legal, we specialise in drafting effective Letters of Demand that get results.
What is a Letter of Demand?
A Letter of Demand is a formal written communication sent by a creditor to a debtor requesting the payment of a debt or the fulfillment of an obligation. It’s the first step in a legal process to recover money owed to you.
While it might sound intimidating, it’s essentially a professional and strong-worded letter stating your claim and giving the debtor a chance to settle the matter before legal action is taken.
Why should I send a Letter of Demand?
Saves Time and Money
Legal proceedings can be time-consuming and costly. A Letter of Demand initiates a negotiation process that can lead to a swift resolution without the need for court involvement.
Preservation of Business Relationships
If the debtor is a client or a partner that you wish to continue doing business with, a Letter of Demand can be a more amicable way to address the issue rather than immediately resorting to legal action.
Higher Success Rate
The majority of debtors respond positively to a well-drafted Letter of Demand, resulting in timely payments and an amicable settlement.
Demonstrates Serious Intent
By sending a formal letter, you demonstrate your intent to pursue the matter legally if necessary. This can compel debtors to take the matter seriously and engage in a resolution.
A Formal Reminder
Sometimes, people genuinely forget or overlook their financial obligations. A well-drafted Letter of Demand serves as a courteous reminder, prompting the debtor to take action.
Legal Foundation
If the matter does proceed to court, having a documented history of attempts to recover the debt strengthens your legal position.
How is an effective Letter of Demand drafted?
1. Clear and concise language
Drafting a well-structured letter that conveys the details of the debt clearly is crucial. Mention the exact amount owed, the nature of the debt, and any relevant transaction details.
2. Factual details
Provide specific information such as invoice numbers, dates, and any relevant agreements. This shows that you have a well-documented case.
3. Polite, yet firm tone
Maintain a professional and courteous tone, but make it evident that you are serious about seeking resolution.
3. Set a deadline
Clearly state a reasonable timeframe (7 days in most cases) within which you expect a response or payment. This adds a sense of urgency.
4. Supporting documentation
Attach relevant documents such as invoices, agreements, or contracts that substantiate the debt. This provides legitimacy to your claim and showcases your seriousness.
5. Legal implications
Mention that you are prepared to take legal action if the matter isn’t resolved promptly. However, avoid making threats or using aggressive language.
6. Contact information
Include your contact details and encourage the debtor to reach out for discussion.
Settling debts before legal action is taken
In Australia, the law recognises the importance of giving debtors an opportunity to settle debts before legal action is taken. A Letter of Demand is a fundamental component of this process and is commonly used as evidence in court if the matter escalates.
It’s worth noting that while you can draft a Letter of Demand on your own, seeking legal assistance ensures that the letter is in compliance with Australian laws and regulations.
Working with a Letter of Demand lawyer
A letter of demand lawyer holds a distinctive advantage in conveying the seriousness of the matter.
Debtors are more likely to take prompt action when they realise that the creditor has legal representation. Such a letter underscores your commitment to pursuing the matter further if necessary.
Partner with Progressive Legal for expert assistance
At Progressive Legal, we understand the complexities of debt recovery and the nuances of effective communication. Our team of experienced lawyers specialises in drafting persuasive and legally sound Letters of Demand that maximise the chances of a successful outcome.
With a profound understanding of Australian laws and regulations, we ensure that your rights are upheld while maintaining a professional approach that prioritises resolution over conflict.
Key takeaway
Reclaiming money owed to you doesn’t have to be a daunting task. A well-constructed Letter of Demand is a powerful tool that can prompt debtors to address their obligations promptly.
At Progressive Legal, we are dedicated to helping business owners like you recover what’s rightfully yours. Our experienced Letter of Demand lawyers are here to guide you through the process, ensuring a smoother journey towards resolution.
Don’t let unresolved debts disrupt your business; take the first step towards reclaiming control today. Contact us to explore how we can assist you in drafting an effective Letter of Demand that speaks volumes.
Video: How Is A Letter Of Demand Useful?
FAQs
How much does a letter of demand cost?
We charge $450 + GST for a standard, non-complex letter of demand. Should the matter be more complex or require us to review documents and correspondence to send the demand, we will let you know.
What is a letter of demand from a solicitor?
A letter of demand can either be sent by the business or by the law firm acting on its behalf. Letters of demand should be sent by the business first to see if that will work, however if it doesn’t, it’s best to instruct a lawyer to send the final letter of demand.
Can anyone write a letter of demand?
Anyone or business can write a letter of demand but it’s best to have the final letter of demand come from a law firm to ensure that it will comply with all the legal requirements prior to the commencement of any legal action, including any legal proceedings to recover the debt.
Should I use a free letter of demand template?
Generally templates are very basic and really do vary in terms of their quality. We’ve noticed a lot of demand letter templates either aren’t worded properly or don’t have enough information.
Can you claim legal costs in a letter of demand?
There is the possibility of claiming legal costs in a letter of demand. The only issue with doing so in the first instance of that, is that you may compromise your ability to recover the rest of the debt.
That is, if they see that you’ve added legal fees to the total of the demand, then they may decide not to pay anything at all, which is contrary to the desired objective.
Is a letter of demand a threat?
If the letter of demand contains a threat of litigation if the debt is not paid by a certain date, then it is a threat in the sense that litigation will ensue unless it’s paid, but it’s not a threat in the sense of threatening conduct.
That is, it is not against the law to threaten litigation. Indeed some Courts require you send these letters to give debtors the opportunity to pay without the Court system being clogged up by every debt.
What is the timeframe for a letter of demand?
This is a good question and depends on the situation, if there is any urgency and the amount of the claim. If it is a very small debt, and the debt has been overdue for a long period of time and they have been given plenty of chances to comply with the previous demands, then 7 days may suffice.
In all other cases, 14 days is usually acceptable, however in larger amounts and if there isn’t any extremely urgent timeframes, 28 days to pay is acceptable. It also depends on what you are asking them to do.
For instance, if you are demanding a post be taken down that is causing irreparable damage to your business, then 24 hours might be reasonable depending on the conduct. It all depends on the situation. If you’re asking someone to change their business name, branding, website etc, then 28 days might be more reasonable under the circumstances, or demand a response at least in 14 days.
What do I do if someone ignores my letter of demand?
If someone has ignored your letter of demand, then it is time to engage a lawyer to provide them one final opportunity to pay the debt before the next legal course of action is taken.
If the debtor is a company, the debt is not in dispute and it is over a certain amount, your lawyer may be able to provide a statutory demand, or otherwise send a final letter of demand to the debtor to give them their last chance.
That letter of demand from a law firm on law firm letterhead is quite effective depending on the circumstances. Only then do some debtors pay as it shows you’re serious about recovering the debt if it isn’t paid. The threat of litigation usually does the trick.
What is the next step after sending a letter of demand?
After you send a letter of demand, you need to wait. Unless there are any other new intervening acts (novus actus interveniens), or further contravening conduct, then you need to wait for the deadline to expire before taking further legal action.
There is nothing to stop you from preparing the legal proceedings in the meantime, if you really believe that there is no way they’re going to comply with the request, in order to be fully ready to file the legal proceedings the day after or as soon as possible after the expiry of the letter of demand.
There is another step that you may want to consider prior to the commencement of proceedings and that is to provide a copy of the draft statement of claim or Court initiating process and have it sent to them or served on them to show them how serious you are about commencing proceedings if they don’t comply.
That is sometimes a really effective way of showing them that you are so serious, you’ve gone to the trouble and expense of having lawyers and potentially a barrister draft the statement of claim. It all becomes very real when they see this documentation.
Letter of demand - different for different states in Australia?
A letter of demand NSW, letter of demand Victoria, letter of demand QLD and letter of demand WA are all very similar. There are some particular legislation for each of the Courts in each of the States and Territories that requires certain items to be done or pre-litigation steps to take place, references to certain legislation in letters of demand.
Best to make sure and contact us if you have any questions. They can depend on the type of the claim, the State and the Court.
“Within 1 month, Ian had the matter resolved and negotiate a settlement for me.”
Lahra Macnab, Founder at Lala Design
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Letter of Demand Lawyers
If you need a letter of demand, or to send a letter of demand to recover debts quickly, please get in touch with us today via phone or the contact form on this page.
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Suite 8.01, Level 8, 100 William St, Woolloomooloo NSW 2011