Letter of demand template (South Africa)

When to send it

Send it after reminders and statements went unanswered.

This template is for business accounts and services already delivered.

Letters under consumer credit agreements follow their own rules and are out of scope here.

• A customer account is months in arrears.
• A cheque or debit order bounced and nobody replies.
• An acknowledgement of debt was signed and then not honoured.

What the letter states

Keep proof of delivery, such as an email read receipt or registered post slip.

A letter worked out

Karoo Fresh Produce supplied a Pretoria restaurant on 30-day terms. The account is R18,650.00 in arrears since July.

After two statements and a phone call, Karoo sends the letter below by email and registered post.

The restaurant replies with a payment plan, which Karoo accepts in writing.

Debts do not wait forever

Under the Prescription Act, an ordinary business debt prescribes three years after it falls due. A debt on a cheque or other negotiable instrument has six years.

A letter of demand does not interrupt that period. What restarts it is the debtor acknowledging the debt, such as a signed acknowledgement of debt or a written payment plan, or the service of a summons.

For accounts close to three years old, check the dates with an attorney before relying on the letter.

Common mistakes

• Demanding interest the agreement does not provide for.
• No clear deadline date.
• Sending it to the wrong legal entity.
• Threats beyond the legal next step.
• No proof that the debtor received it.

Field by field

• Debtor: the registered name and number, such as Jacaranda Bistro (Pty) Ltd. Check it against the credit application.
• Account: the account number from your statements. The debtor's bookkeeper uses it to find the debt.
• Invoices: one line each with the number, date and amount in rand. Attach the latest statement.
• Interest: include it only if the signed agreement provides for it. Quote the clause and the rate.
• Deadline: an exact date such as 21 November 2026. Write the date rather than a number of days.
• Payment details: bank, branch code, account number and reference. A wrong reference delays allocation.
• Signature: a name, a position and a phone number for the debtor to call.

Variants for other cases

Each variant replaces the paragraph that explains the debt.

• Bounced debit order: «The debit order of [R amount] on [date] was returned unpaid by your bank.»
• Broken acknowledgement of debt: «You signed an acknowledgement of debt on [date] and missed the payments due on [dates].»
• Dishonoured cheque: «Cheque number [number] for [R amount] was returned marked [reason].»
• Short email version: «Account [number] shows [R amount] unpaid since [date]. Please pay by [deadline] or contact me to arrange terms.»

What happens after you send it

A second example from Cape Town

Table Bay Cleaning services an office park on monthly invoices.

The park's managing agent owes R42,300.00 for August to October.

Table Bay sends the letter by email with a read receipt and by registered post.

The agent pays R20,000.00 and signs a plan for the balance over two months.

Table Bay confirms the plan by email and sends a reminder before each date.

Keep the file ready

An attorney asks for the same papers in almost every case.

• The signed credit application or the service agreement.
• Every invoice and the latest statement of account.
• Proof of delivery, such as signed delivery notes.
• Copies of reminders and the letter of demand.
• Proof that the letter reached the debtor.

A complete file saves time and cost if the debt goes further.

Store the papers in one folder named after the debtor and the account number.

Add each new message to the folder on the day it arrives.

Let the reminders go out on their own

Most accounts never reach this letter when reminders start on time. Makatea sends them on WhatsApp and email from the due date. Try it free for 14 days, no card needed.