Guide · Free template

Letter of demand template for unpaid invoices.

A clear, firm letter of demand is often the step that finally gets an invoice paid. Copy the template below, fill in the brackets, and send it with proof of delivery.

By Kyle Zorger, founder of ARS Financial · Updated 13 October 2026 · 5 min read

In short

State who owes what: the debtor’s full or registered name, the invoice numbers and the exact amount.
Give one clear deadline, commonly 7 to 14 days, and say exactly how to pay.
Say what happens next if they don’t pay, and only threaten what you actually intend to do.
Send it by email and registered post or hand delivery, and keep proof of both.
A letter of demand doesn’t stop prescription; an acknowledgement of debt or a summons does.

The template

Replace everything in [square brackets]. Delete any optional lines that don’t apply to you.

Template

[Your business name] [Physical address] · [Phone] · [Email] [Date] To: [Debtor’s full name or registered company name] [Registration number, if a company] [Address and email] LETTER OF DEMAND: OUTSTANDING AMOUNT OF R[amount] We refer to the [goods / services] supplied to you on [date(s)] and invoiced under invoice number(s) [numbers], dated [dates], which were payable on [due date]. Despite our reminders of [dates], the amount of R[amount] remains unpaid. We hereby demand payment of R[amount] [plus interest at [rate] from [date], as agreed in our terms and conditions] within [7 / 14] days of the date of this letter, that is by [deadline date], into the following account: Bank: [bank] Account name: [account name] Account number: [account number] Branch code: [branch code] Reference: [invoice number] If payment is not received by [deadline date], we will proceed with further steps to recover the amount, which may include handing the matter over for collection or legal action, without further notice to you. If you dispute this amount, or wish to propose a payment arrangement, please contact [name] on [phone] or [email] before [deadline date]. Yours faithfully, [Name] [Title], [Your business name]

How to send it

By email, as a PDF on your letterhead, to the person who approves payments and the general accounts address.
By registered post or hand delivery to the debtor’s business address, especially for larger amounts.
Keep proof of sending, and of delivery where you can: the sent email, the registered-post slip, or a signed copy.
Check your contract in case it requires notices to be delivered to a particular address.

Mistakes to avoid

Threatening things you won’t do. If you say you’ll hand it over on a date, do it.
Threatening criminal charges, or contacting the debtor’s family or employer to pressure them. Unpaid invoices are a civil matter.
Marking it “without prejudice”. That label is for settlement negotiations, not demands.
Vague amounts. Quote the exact total and list the invoices it’s made up of.
Waiting too long. Most ordinary debts prescribe after three years, and a letter of demand doesn’t stop that clock.

If they still don’t pay

The next step is handing the debt to a recovery firm or an attorney. If they come back offering instalments, put the arrangement in writing as a signed acknowledgement of debt. With ARS Financial, a letter of demand is included at no extra charge on every recovery case, sent on our letterhead and logged on your case.

Frequently asked questions

It’s standard practice and courts expect it. Suing someone who would have paid on demand, without asking first, can count against you when legal costs are decided.

There’s no fixed rule for commercial debts, but 7 to 14 days is common. Check your agreement in case it sets a notice period.

Yes. Any business can send a letter of demand. A letter from an attorney or a recovery firm can carry more weight, and you’ll need an attorney if the matter goes to court.

Email is common and fine; keep proof that it was sent. WhatsApp can back it up, but for larger amounts also send it by registered post or hand delivery, and check whether your contract says how notices must be delivered.

Hand us the invoice. We’ll take it from here.

No recovery, no fee, and a live view of every step in your client portal. Based in Cape Town, working nationwide.

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