Letter of Demand Checklist

DEBTOR CHECKLIST

		✔
1.	How does the debtor normally pay its debt? Never pays on time Always pays on time Pays amounts as a lump sum Pays irregularly – appears disorganised
2.	Are you aware of any reasons for the debtor’s failure to pay? Are they disputing the debt? Do they have cashflow issues? Don’t know
3.	What is the relationship with the debtor? Critical * Important Somewhat important Neutral Broken down/Complete
4.	How have you communicated with the debtor previously? Verbally – phone calls, face-to-face Emails – soft form * Letters – hard form Online orders – have never actually communicated directly with the debtor
5.	Would the debtor be motivated to pay by a demand from the creditor or by a solicitor? Use of solicitor letterhead Use of creditor letterhead Other

		✔
1.	Who is the correct legal entity that owes the debt? Ensure to check any contract or agreement as well as correspondence from the debtor
2.	What type of entity is the debtor? Company Trust Partnership Sole trader Other
3.	Who is the correct legal entity of the creditor that the debt is actually owed to?
4.	What is the source of the obligation to pay? Is there an existing contract with the debtor? Was a guarantee provided? Have invoices been correctly rendered to the debtor?
5.	If there is a contract, what are the terms of the contracts?
6.	What other amounts are you able to recover under your contract?
7.	What is the total amount of the debt to be recovered?
8.	What are the details of the debt? Date of invoice or contract Goods or services of the debt Parties stated on the invoice or in the contract Invoice numbers, statement of account
9.	Was the invoice correctly rendered?
10.	What period of time should be provided to the debtor (suitable to consider the amount of the debt – a debt for $1,000 may require less time to be reasonably seeking payment of the debt than one for $1million)
11.	Is there any potential dispute in respect of the debt or the contract?
12.	What further steps would be willing to be taken should the debtor continue to fail to make payment?