Free Letter of Demand for an Unpaid Invoice

Create a Letter of Demand for an unpaid invoice in Australia. Enter your invoice and debtor details, choose a payment deadline, review the letter, and copy, print, or download it — free, no signup required.

Your Details
Debtor Details
Invoice Details
Payment Deadline

Calculated deadline: 15 September 2026

Payment Details (optional)
Optional Message
FORMAL LETTER OF DEMAND Date: 1 September 2026 To: [Debtor Name] [Debtor Address] From: [Business or Creditor Name] [Email] Re: Outstanding Payment for Invoice #[Invoice Number] Dear Sir/Madam, We are writing regarding Invoice #[Invoice Number], dated [Invoice Date], for the amount of $0.00. The invoice was due for payment on [Original Due Date] and remains outstanding. Please treat this letter as a formal request for payment of the outstanding amount of $0.00. We request that payment be made in full by 15 September 2026. If payment has already been made, please disregard this letter and contact us so we can update our records. If payment is not received by the stated deadline, we may consider further options available for recovering the outstanding amount. Yours sincerely, [Business or Creditor Name]

Please read before you rely on this document

OfficeDraft is not a law firm and this tool does not provide legal advice. This letter is a general draft generated from the information you enter, intended to help you request payment of an overdue invoice. It does not guarantee recovery of the debt and is not a substitute for advice from a qualified professional, particularly for disputed, complex, or high-value matters.

What Is a Letter of Demand?

A letter of demand is a formal request for payment sent to someone who owes money and hasn't paid by the due date. For an unpaid invoice, it names the invoice number, the amount owed, the original due date, and a new deadline. Businesses usually send one after informal reminders and phone calls haven't worked, and before going to a debt collector or small claims court. It puts the request on record with a clear date and amount, which matters if the debtor still doesn't pay and the matter moves further.

Create a Letter of Demand for an Unpaid Invoice

This tool is for a common situation: an invoice has passed its due date, and earlier reminders haven't resolved it. A letter of demand sets out what is owed, when it was due, and gives a clear deadline to respond. It doesn't suit every case. For disputed invoices or larger amounts, other steps may be more appropriate first.

How to Use This Free Letter of Demand Template

  1. Enter your business or creditor details.
  2. Add the debtor and invoice information.
  3. Enter the amount owed and select a payment deadline.
  4. Add payment details if needed.
  5. Review the generated letter.
  6. Copy, print, or download it for free.

What to Include in a Letter of Demand for Payment

A clear letter includes the creditor's name, the debtor's name and address, the invoice number and date, the original due date, the amount owed, a payment deadline, and payment details where relevant. These details tell the recipient exactly what is being requested and why, which reduces the chance of a dispute over what's actually owed.

How Much Time Should You Give Someone to Pay?

This tool lets you choose a payment deadline of 7, 14, or 21 days. The right timeframe depends on your payment terms and the circumstances between you and the debtor. There isn't one deadline that fits every situation.

Letter of Demand vs. Final Demand vs. Statutory Demand

People search for this document under several names: letter of demand, demand letter for payment, final demand letter, formal demand letter, and notice of demand. For an unpaid invoice in Australia, these generally mean the same thing: a written request for payment with a deadline. A statutory demand is different. It's a formal document under the Corporations Act, used only against a company that owes $4,000 or more, and it comes with strict time limits set by law. If a company ignores a statutory demand, that can be used as evidence it can't pay its debts. This tool generates a general letter of demand, not a statutory demand.

What Happens After You Send a Letter of Demand?

The debtor may pay, dispute the invoice, ask for more information, or not respond at all. If there's no response by the deadline, the usual next steps are a debt collection agency, a solicitor's letter, or a claim in the small claims division of your state or territory's court, depending on the amount owed and your agreement with the debtor.

Frequently Asked Questions

What is a Letter of Demand for an unpaid invoice?
A Letter of Demand is a formal, written request for payment sent to a debtor after an invoice has passed its due date. It sets out what is owed, why, and by when payment is expected, and is a common step before further recovery action is considered.
When should I send a Letter of Demand?
Businesses typically send one after an invoice is overdue and earlier reminders have not resolved the issue. There is no single rule for every situation — it depends on your payment terms and any agreement with the debtor.
What should I include in a Letter of Demand for payment?
A clear letter includes the invoice number, invoice date, original due date, amount owed, a specific payment deadline, and how payment can be made. This tool fills in those fields automatically as you type.
How much time should I give someone to pay?
This tool lets you choose 7, 14, or 21 days. The right amount of time depends on your existing payment terms, the size of the invoice, and your relationship with the debtor.
Can I create a Letter of Demand online for free?
Yes. This tool is free to use — you can generate, review, edit, copy, print, and download the letter without payment or an account.
Do I need a lawyer to write a Letter of Demand?
Not for most straightforward overdue invoices. For disputed, complex, or high-value matters, getting advice from a lawyer is worth considering before you send anything.
Can I edit the letter before downloading it?
Yes. The preview updates as you type, so you can review and adjust the wording before you copy, print, or download it.
What should I do if the invoice is disputed?
If the debtor disputes the invoice, a Letter of Demand may not be the right next step until the dispute is resolved. Discussing the disagreement directly first, or getting legal advice if it doesn't resolve, is worth considering.
Are there different rules for unpaid invoices in Australia?
Payment terms and remedies can vary depending on your contract, industry, and the size of the debt. This tool provides a general draft — it does not replace advice specific to your situation.
What is a letter of demand?
A letter of demand is a formal written request for payment sent to someone who owes money and has not paid by the due date. It states the amount owed, the original due date, and a new deadline to pay before further action is taken, such as debt collection or a small claims court filing.
How do I write a letter of demand for an unpaid invoice?
Include your business name and contact details, the debtor's name, the invoice number and date, the original due date, the amount owed, and a clear payment deadline. State how payment should be made and what you intend to do if the deadline passes without payment. This tool fills in that structure for you from the details you enter.
How much does a letter of demand cost?
A letter of demand you write yourself, or generate with a free tool like this one, costs nothing. If you ask a solicitor to draft or send one on letterhead, the cost varies by firm and is usually charged as a flat fee or a set number of billable minutes.
Is a letter of demand legally binding?
A letter of demand is not a court order and does not force payment on its own. It is a formal step that puts the debt and deadline on record, which can support a small claims court application or a debt collection referral if the debtor does not pay.
What happens if someone ignores a letter of demand?
If the deadline passes with no payment and no response, the usual next steps are referring the debt to a collection agency, engaging a solicitor, or filing a claim in the small claims division of your state or territory's civil court, depending on the amount owed.
What is the difference between a letter of demand and a statutory demand?
A letter of demand is a general request for payment and can be used for any debt amount or debtor type. A statutory demand is a stricter legal document under the Corporations Act, used only against a company that owes $4,000 or more, with fixed time limits set by law. This tool generates a letter of demand, not a statutory demand.

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Further reading: Australian Small Business and Family Enterprise Ombudsman · ACCC — business rights and protections · business.gov.au — following up a late payment

Disclaimer: This tool provides general document drafting assistance and is not legal advice. For disputed, complex, or high-value matters, consider getting advice from a qualified professional.