What is a Letter of Demand (Second reminder)?

A Letter of Demand (Second reminder) is a follow-up reminder, after issuing an initial reminder letter, to a client or customer to repay outstanding debt.


How to create a Letter of Demand (Second reminder)

1
Create a Zegal Account
2
Make an agreement using Zegal templates
3
Get help from a lawyer anytime

Easy to Use Legal Templates

Quickly and easily create any legal agreement for you or your team.

Affordable Plans

Straightforward pricing plans and bespoke packages built to simplify all your legal demands.

Vast Document Library

Zegal’s comprehensive collection of agreements means you always have what you need at your fingertips.

Essentially, a Letter of Demand (Second reminder) is an important letter to have in any small business’s arsenal. Notably, as a small business, managing cash is an important part of day-to-day operations. Additionally, instilling a smooth workflow to communicate reminders of overdue payments ensures a collections process that is effective and efficient.

Firstly, a formal and process-driven set of communications using well-written templates goes a long way to ensure that you can collect payments in a courteous and timely manner.  Secondly, the Notice of Overdue Payment letter can also be called a Collections Letter, Letter of Demand, or a Past Due Invoice Letter.

What is in a Letter of Demand (Second reminder)?

In essence, a short, crisp and factual letter is key. Additionally, one that is sent out on a regular basis and using a standard process. Importantly, this can take much of the emotions out of the collections process.  Therefore, ensure you have the following:

Contact Details of the Customer – Include at least the address, telephone number and the email address.

Amount Overdue – The amount that needs to be paid by the customer.

Invoice Reference – It is always good to refer back to the invoice in question and mention the date in which it was raised to increase the sense of urgency.

Your Contact Details – Always give the customer as much information as possible to contact you to help resolve the issue.

When Should You Use a Letter of Demand (Second reminder)?

Generally, a formal notice can be sent any time after the invoice is past due. Additionally, make sure that there is a process of escalation if you don’t receive payments after 2 or more attempts at contact. 

How long do settlements take?

The time required to fulfill a settlement can vary from case to case. However, on average it takes around 2-6 weeks for all parties to talk things through and come to an agreement. A settlement can consist of multiple steps including getting signatures, processing cheques, and others and so it takes some time to execute it completely.
Conclusion

A proper and courteous letter when payments are past due will always help to keep a cordial relationship with the customer.  Use this handy letter as the first step in collecting.  Ensure that you have a series of escalating letters if payments have still not been made.

You Might Also Like

Along with this document, make sure you see these other templates in our library:

 

The Zegal Template Library

Zegal's template library is a list of essential and premium business templates for your everyday legal needs.

Save money and time without sacrificing quality or missing vital legal requirements. Whether you're a startup or a larger enterprise, Zegal lets anyone create a legal agreement.

Let us take care of the legals so you can focus on running your business.

If you need more help, our "Talk to a Lawyer" feature gives you access to a qualified lawyer to get all the expert advice you need.

Try it for free today!

Nice things people say about Zegal.