Letter of demand
A formal written request for payment — flexible and usually the first step.
Comparison
Letter of demand vs statutory demand
A letter of demand and a Corporations Act statutory demand are very different tools. Knowing which applies — and when — helps you escalate sensibly.
A letter of demand is a formal written request for payment. It sets out the amount owed, references the relevant invoices and terms, and gives the debtor a clear deadline to pay or respond. It is flexible, can be sent at any stage, and is usually the first formal step in recovering an overdue commercial account. Merion's letters are professional and evidence-led, and often prompt payment on their own.
A statutory demand under the Corporations Act is a far more serious instrument used against a company for an undisputed debt above the statutory threshold. If it is not satisfied or set aside within the prescribed period, it can support a presumption that the company is insolvent — which is why it should only ever be issued with proper legal advice. The two are not interchangeable: most accounts are better served by a letter of demand and professional follow-up first. This is general information, not legal advice — speak with a qualified solicitor before issuing a statutory demand. To begin, you can refer the account for a free appraisal.
Know the difference
Two very different tools
Statutory demand
A serious Corporations Act instrument for undisputed company debts above the threshold.
Different consequences
An unanswered statutory demand can support a presumption of insolvency.
Get advice first
A statutory demand should only be issued with proper legal advice.
Start with a professional demand
We can issue and follow up a letter of demand on a no-recovery-no-commission basis.
Common questions
Frequently asked questions
What is the difference between the two?
A letter of demand is a flexible written request for payment. A statutory demand is a formal Corporations Act process for undisputed company debts above the statutory threshold, with serious consequences if ignored.
Which should I use first?
Most overdue accounts are best served by a letter of demand and professional follow-up before any statutory or legal step is considered.
Can you issue a statutory demand for me?
A statutory demand is a legal instrument that should be issued with proper legal advice. We focus on professional commercial recovery, including letters of demand, and can let you escalate where appropriate.
Is this legal advice?
No — this is general information only. Consult a qualified solicitor before issuing a statutory demand or taking legal action.
Get started
Need an overdue account followed up?
Refer it for a free appraisal — we'll handle the demand professionally and compliantly.