When you have tried unsuccessfully to get your invoice paid and you need to take more serious action a letter of demand is sent. Often this is the final reminder letter before taking legal action.
Before writing a letter of demand, it is important to send first and second reminder letters. These can be friendlier and help you maintain your business relationship if this is important to you.
A letter of demand states how much is owed, what for and when the invoice needs to be paid. It may also include a warning that you will consider legal action if the debt is not paid by a particular date. The title ‘Letter of demand’ at the top of the page lets the hirer know you are serious about getting your money.
You can send it yourself or ask a lawyer to write it on their letterhead. This can sometimes encourage the debt to be paid promptly. This can be a relatively inexpensive and effective way of recovering your debt.