Want to request overdue payments, but without starting a court case? Prepare a demand for payment (payment request) – see how to do it.
What is a demand for payment?
A demand for payment is a document that aims to make the debtor pay financial arrears. This is the first step of amicable debt recovery, which can help save time and money.
Demand for payment – Template
There is no official, single template for a payment request. However, it is important that:
| It is written in a firm language that is clear and understandable to the debtor. | For example: “I demand immediate settlement of the debt for…”. |
| It contains the details of both parties (creditor and debtor), such as names and addresses. | For example: John Smith, John Doe, along with residential addresses. |
| It indicates the basis of the debt. | For example: invoice number or specific contract. |
| It specifies the amount owed. | For example: “10,000 PLN.” |
| It indicates the payment deadline. | For example: “Within 14 days from the date of receipt.” |
| It specifies the consequences of non-compliance. | For example: Interest charges, filing a lawsuit. |
| It indicates the method of payment. | For example: Payment to a specified bank account number. |
| It specifies the date and place of issuance of the payment request. | |
| It is signed by the creditor. |
A payment request can be sent via registered mail or delivered in person. Before sending a demand for payment, it is worth trying to contact the debtor. There may be a possibility to resolve the issue amicably.
How to Increase the Effectiveness of a Demand for Payment?
The payment request should inform the debtor about the creditor’s next steps in case of non-payment. To increase its effectiveness, it is worth emphasizing the possible consequences. They may include:
| Suspension of delivery of goods or services | The creditor has the right to cease fulfilling further orders until payment is settled. |
| Legal proceedings | In the absence of a response to a payment request, the creditor may take the matter to court. It is also worth informing the debtor that he may bear the court costs. This is usually the case if the court upholds the creditor’s claims. |
| Sale of the debt | The creditor may sell the debt to a debt collection company that will continue the recovery process. |
| Publication of data in Economic Information Bureau (Polish BIG register) | Information about the debtor’s negative payment history may be placed in the Economic Information Bureaus. This may hinder the debtor’s ability to obtain loans. It can also influence future agreements with contractors. |
Additionally, in a pre-litigation demand for payment, it is worth:
- Using emphases, such as red colour or enlarged font. This should highlight the most important information. For example the amount of debt, payment deadline, and consequences of non-compliance.
- Maintaining a firm but objective tone. The payment request aims to compel the debtor to pay, not to intimidate him. Therefore, it is important to avoid aggressive language. You should always adhere to the principles of business etiquette.
- Respect factual and linguistic correctness. The demand for payment should be free of spelling and grammatical errors.
Can a Demand for Payment be Sent in English?
Many companies choose to send a payment request in English. Especially in the case of international contracts or foreign clients. This is a way to pursue debts outside Poland. However, it is essential to ensure that both parties understand the language. It is also important to:
- Maintain clarity of communication.
- Keep a professional, concise, and polite but firm tone.
- Specify the payment deadline in a clear way.
- Inform about the consequences of non-payment.
- Adhere to grammatical and linguistic rules
Remember to sign a demand for payment and indicate the place and date of its preparation. You can send it by traditional mail or e-mail.
When to Send a Demand for Payment?
The legislator does not specify a precise moment when the creditor should send a payment request. In practice, they are rarely sent in case of minor delays, but it is not advisable to wait for too long. The decision to prepare a demand for payment should be based on common sense and consider:
- The amount of the debt.
- The relationship with the debtor.
- The debtor’s payment history.
How Many Demands for Payment Should You Send?
The legislator does not resolve this issue clearly. This means that the creditor can send multiple demands for payment. However, if the debtor ignores the letters, it is worth taking other steps, such as filing a lawsuit. To maintain the highest effectiveness, you can send:
- Payment Request.
- Pre-litigation demand for payment.
Both documents should provide a clear message about the consequences in case of non-payment, including filing a lawsuit.
How to write a Demand for Payment? Summary
A payment request is an effective tool for recovering debts, but it does not guarantee success. Remember to send it at the appropriate time and adhere to business etiquette rules. It is crucial to specify the consequences of non-compliance. In case of no response from the debtor, the creditor has a range of other options. You can for example pursue claims through courts. Another possible solution is cooperation with a debt collection company.
Do You Need More Information About a Payment Request? Our experts are ready to help and will answer all your questions. Feel free to contact us!
FAQ – Questions and Answers
What is a payment request?
A payment request is a letter informing the debtor of an overdue debt and calling on him to settle it by a certain date. It is the first step in the amicable recovery of debts, which can save the company time and money.
When to send a payment request?
There is no fixed deadline for sending a payment request. Common sense should guide the decision. Always consider factors such as the debt’s value, relationship with the debtor, and payment history.
What should a demand for payment include?
A payment request should include at least:
– The details of the creditor and debtor.
– The amount of the debt.
– The exact payment deadline.
– The invoice number or other document confirming the debt.
– Consequences of non-compliance (e.g., interest charges, legal action)
– The creditor’s signature.
How to send a payment request?
You can send it by registered mail with confirmation of receipt or deliver it personally.
What to do if the debtor does not respond to a demand for payment?
If the debtor does not respond, the creditor may:
File a lawsuit.
Sell the debt to a debt collection company.
Publish the information in the Economic Information Bureau.
Is it worth seeking legal assistance when drafting a demand for payment?
Legal assistance can be helpful, especially in complex cases or if you lack experience in debt recovery.
Where can I find templates for payment requests?
Templates for payment requests can be found online or you can ask your lawyer to prepare it.