Chasing a client who won't pay is the least enjoyable part of running a business. A well-drafted letter of demand is the step that turns "I'll get to it" into payment — and sets you up to recover the debt in court if it doesn't.
A statement reminder is easy to ignore because it carries no consequence. A letter of demand changes the register: it's a formal document, it references the debt precisely, it sets a hard deadline, and it makes clear that court action follows if the deadline passes. For most late payers, that shift alone is enough — paying you becomes cheaper and simpler than the alternative.
Under the Prescription Act 68 of 1969, most ordinary trade debts prescribe after three years — after which you can lose the right to claim entirely. The clock generally runs from when the debt became due. Sending your letter of demand promptly, and issuing summons before the three years expire if it comes to that, protects your claim. Don't let an awkward client run the clock down.
Enter the invoice details and LetterUp produces a professional letter of demand, ready to send as a PDF — for R79, no account needed.
If the deadline passes, your route depends on the amount:
In each of these, your letter of demand is the first document the court will want to see.
If late payment is a recurring drain — not a one-off — generating each letter by hand doesn't scale. The LetterUp business portal lets you produce demand letters on your own company letterhead, store customer details for one-click pre-fill, track what you've sent, and group overdue accounts into cases with automatic deadline reminders. Businesses start with three free letters, no card required.
Yes. Where your terms provide for interest, or under the Prescribed Rate of Interest Act, you can generally claim interest from the date the debt fell due. Say so in the demand for extra pressure.
Most trade debts prescribe after three years under the Prescription Act. Send a demand — and issue summons if needed — before that period expires to protect your claim.
The Small Claims Court is fast and needs no attorney. Send a letter of demand and allow 14 days before issuing a summons.
No. Any business can send a letter of demand — it just needs the debt, the invoice, the amount and a deadline. LetterUp drafts one for R79, or generate them in bulk on your letterhead in the business portal.
LetterUp is a document preparation service, not a law firm. This guide is general information, not legal advice, and does not create an attorney-client relationship. For significant debts or contested claims, consult a qualified South African attorney.