Final Demand Letter

Our Final Demand Letter template:

  • Issue a final demand before legal action
  • Drafted by our in-house UK solicitor for reliability
  • Protect your right to claim interest and fees
  • Cost-effective credit control and debt recovery
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How Does It Work?

  • 1. Download
  • 2. Edit
  • 3. Print
  • 4. Sign

Use our template Final Demand Letter to warn a customer with a very overdue debt that legal action will be commenced as the next stage if the overdue account is not settled within a specified period of time. Generally you should say this is between 7 and 14 days.

This template letter is for use in the UK, as it refers to UK legislation – in this instance, the Late Payment of Commercial Debts Regulations 2013.

Under this legislation, you are entitled to claim interest on the debt from the date at which payment of the overdue invoice or account became due (i.e. if your payment terms are 30 days from the date of the invoice, interest arises on the 31st day after the date of the invoice). You can also claim fixed amounts as compensation for having to bring the claim. Your right to claim these is referred to in this letter.

Using the Final Demand Letter template

Send this letter as the penultimate stage in your credit control process for securing the payment of late payments.

As a final demand letter, it is worded in a very firm and formal manner, which is why it is not recommended for use as the initial stage of asking for payment when an invoice becomes overdue. A more gentle tone is needed at that initial stage – see our Invoice Overdue Letter template.

This letter should be sent as the very last action before issuing legal proceedings to recover the money owed to your business. If you do not receive payment of the debt quickly after issuing such a letter,k,then you should move on to suing shortly afterwards, when the deadline for payment that you set has passed. Do not leave it too much longer after that before you issue proceedings, as further delays are not likely to assist your chances of a recovering the debt.

For the full guide on how to use our suite of debt collection templates, please click here.