Sample Letter Final Notice Before Legal Action


As a business owner, it is terrible that some consumers just cannot or will not pay their invoices. This is a letter of intent to initiate legal action if you have followed the six-step procedure to attempt to recover the overdue payment. This letter is sometimes referred to as a letter of final demand.

Sample 1: Letter of final notice before instigating legal proceedings

[Business name]
[Business Address]


Re: Invoice no: [number here]

Dear [Sir / Madam],

We are very surprised and disappointed that you have not replied to our letter sent on [date] where we sent a final reminder that your account is overdue by [amount].

We have always had good business relations in the past but as a [small/medium sized] business ourselves, we cannot allow overdue amounts to remain unpaid indefinitely. Unfortunately this means that with regret we must inform you that unless this amount is paid by [date] we will have no other option but to begin legal proceedings to recover the overdue amount.

If there are any outstanding reasons why you have not yet paid please get in touch immediately so we may discuss them further.

Yous Sincerely,


Sample 2: Final demand letter before legal proceedings

[Business name]
[Business Address]


Re: Invoice no: [number here]

Dear [debtor’s name]

It has come to our attention that your account is now SERIOUSLY OVERDUE and this letter is a final demand for payment. We have, as of yet, received no payment towards this account or contact explaining the failure to make payments. If there is a reason why these payments have been withheld we would be obliged if you could contact us in order to either explain the reason or come to some form of payment arrangement.

If we do not hear from you within the next seven days we will have no alternative than to commence with further debt collection procedures. This will include instructing out debt collection agents to recover this debt.

This action can be avoided by either settling the outstanding amount immediately or contacting us within seven days with a suitable payment arrangement.

I look forward to hearing from you.

Yours sincerely

Creditor name

Sample 3: Letter of final notice before legal proceedings

[Business name]
[Business Address]


Re: Invoice no: [number here]

Dear [name of recipient],

We are very surprised and dismayed that despite our previous correspondence with you, your outstanding balance of [amount] still remains unpaid.

We have sent five previous reminders of the amount and it is now [length of time] since your payment actually  became due. Despite our recent good business relationship we are left with no option but to instigate legal proceedings if your payment has not been received by [insert date – around 7 days from the date of the letter].

Should there be some extenuating reason why you have been unable to pay, please get in touch immediately so we can discuss the matter further.

Yours Sincerely,

[Name of Sender]

Also See: Sample Letter outlining C.O.D. Terms

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