When running a business it is easy to put unpaid bills to the back of your mind and give your debtors a bit more time, and hope they pay eventually.
Whilst that is certainly a noble stance, it does not necessarily make good business sense to forgo money that you worked hard to earn. Especially when cashflow is the lifeblood of every business!
When we get asked to assist a client with chasing a bad debt we usually start with a letter of demand. It is a simple and effective way to make your debtor aware that you will not merely sit back and wait for payment, you will not forgive the debt and will not stand for any more broken promises for payment. After all, you kept your part of the bargain – shouldn’t they?
A good letter of demand will achieve 3 things;
- It will clearly state and justify the full amount you say must be paid.
- It will provide a definite time in which payment is expected.
- It will provide a clear warning that if not paid, legal proceedings will (regrettably) shortly follow.
Don’t expect every letter of demand to be immediately successful, as some debtors simply won’t have available funds to pay the amount demanded regardless of who might be making the threat of legal action.
However, for those debtors who might just be holding out on you or could find the money if pushed, a legal letter of demand can be a very effective debt collection tool.
If you think this might be the kind of help you need to deal with invoiced debt, we have streamlined the initial process to make it as cost effective as possible and created a simple one-page instruction sheet for you to complete and return to us.
Simply complete the form (click link below) and return it to our offices to get the ball rolling. We are currently charging just $150.00 (Plus GST) to send a legal letter of demand and then return any written response received to you.
NB: Any further correspondence, negotiations, discussions, legal advice or services provided are not included and will be charged at our usual rates and discussed with you prior to the incurrence of any further charges.[vc_btn title=”Letter of Demand Instructions” color=”inverse” size=”lg” align=”center” i_icon_fontawesome=”fa fa-file-pdf-o” add_icon=”true” link=”url:http%3A%2F%2Fwww.bglaw.com.au%2Fwp-content%2Fuploads%2F2017%2F03%2FBG-Lawyers-Letter-of-Demand-Instructions.pdf|||”]