Prepared by Sydney Collect
Updated September 2026 · Prices checked on each provider's website, 22 September 2026
Send a letter now →
Key stat: a formal letter of demand gets 55 to 70% of unpaid debts paid after reminders have failed, usually within 7 to 21 days. (Sydney Collect 2026 Debt Collection Report, §8)

Should you use a free template or pay for a letter?

If this is the first time you're asking for the money in writing, use a free template. It costs nothing and covers everything a letter of demand needs.

If you've already asked and heard nothing back, or you don't want your own name on the letter, pay for one. Our $29 letter goes out on SydneyCollect letterhead, and we follow it up for you.

How did we compare the options?

We looked at four things for each one:

  • Price. Taken from each provider's own website on 22 September 2026.
  • Who writes the letter.
  • Who sends it, and whose name the debtor sees on it.
  • What happens if the debtor doesn't reply.

What does each option cost?

OptionPriceWho sends itIf there's no reply
Free template business.gov.au or our free generator$0You, under your nameUp to you
Legal123 Letter of demand template$99 + GSTYou, under your nameUp to you
Lawpath Membership, 550+ templates$540 a yearYou, under your nameUp to you
SydneyCollect Letter sent for you$29We do, on our letterheadWe follow it up. Still unpaid after 14 days, it goes to a partner law firm

Source: each provider's own website, checked 22 September 2026. Legal123 is a one-off price you can reuse. Lawpath is $45 a month on a 12-month plan, paid up front. Links are in the sources list below.

Already asked once and heard nothing? Send the next letter on our letterhead. Send a letter for $29

What do you get with a free template?

business.gov.au has a free letter of demand template. It's the government's own, and it's where most people start.

We also have a free letter of demand generator. You fill in the details and pick from six debt types: unpaid invoices, wages, rent, strata levies, fees, and money you lent. Then you download it as Word or PDF. You don't need an account.

Both give you a proper letter in a few minutes. Neither checks your wording, sends the letter, or does anything if you get no reply.

What do you get with a paid template?

Legal123 sells a letter of demand template for $99 plus GST. You pay once and can use it as often as you like. It comes in two versions: a firm one for a final demand, and a softer one if you want to keep the customer.

Lawpath works differently. It's a membership that costs $45 a month on a 12-month plan, paid as $540 up front. You get more than 550 legal templates, and a letter of demand is one of them.

With both, you still fill in the letter, sign it and send it yourself. The wording is better than most free templates. Your name is still the one on it, and nobody follows it up for you.

If a letter of demand is the only legal document you need this year, $540 is a lot to spend on it.

What do you get with SydneyCollect's $29 letter?

You tell us who owes you money and how much. We send them a letter of demand with lawyer-approved wording, on SydneyCollect letterhead, and we track it. If the debt is still unpaid after 14 days, we pass it to a partner law firm.

You don't write anything and you don't chase anything.

We can only do this where your debtor is in NSW, Victoria, Queensland or the ACT. If they're in WA, SA, Tasmania or the NT, use the free template and send it yourself.

Real example

This is what "we track it and follow it up" looked like for a Sydney fit-out company owed $3,125. The letter went out at 5:55pm on 2 September, and our tracking link showed the debtor opened it within a minute. No payment came, so the automatic day 7 reminder went out on 9 September. The debtor paid in full on 11 September. A template can't tell you the letter was opened, and it won't send the reminder for you.

Read the case study →

Which one should you use?

  • First time asking in writing, and happy to send it yourself: use a free template.
  • You want better wording but still want to send it yourself: Legal123's $99 template. For one letter, it costs far less than a year of Lawpath.
  • You need lots of different legal documents this year: a Lawpath membership can make sense.
  • You've already asked and heard nothing, or you don't want your name on the letter: send our $29 letter.
  • Your debtor is in WA, SA, Tasmania or the NT: use a free template. We aren't licensed to collect debts there.
  • The debtor is in liquidation or bankruptcy, the debt is disputed, or you already have a court judgment: another letter won't help. You need a proof of debt, a negotiation, or enforcement.

Plenty of people use two of these. They send a free letter first, and if that gets ignored, they send ours.

If you have several unpaid invoices, sending letters one at a time eats up your week. Bulk Debt Recovery sends them all at once from one spreadsheet, at $29 per letter. See how Bulk Debt Recovery works.

SydneyCollect is one of the options on this page. We checked every price for the other providers on their own websites. If something is wrong, email info@sydneycollect.com and we'll fix it within 24 hours.

Frequently asked questions

Yes, for a first letter. A free template covers everything a letter of demand needs: who owes what, what it's for, how much, and the date to pay by. It won't be sent for you, and nobody follows it up if you get no reply.
You fill in a template and send it yourself, with your name on it. Our $29 letter uses lawyer-approved wording and is sent for you on SydneyCollect letterhead. We track it, and if the debt is still unpaid after 14 days, we pass it to a partner law firm.
Usually not. Lawpath's membership is $45 a month on a 12-month plan, paid as $540 up front, and it covers more than 550 templates. If a letter of demand is the only document you need, Legal123's $99 template or our $29 letter costs far less.
No. Anyone in Australia can write to someone who owes them money. You're chasing your own debt, so you don't need a licence. Whose name is on the letter can still affect whether you get paid.
No. We send letters to debtors in NSW, Victoria, Queensland and the ACT. We aren't licensed to collect debts in WA, SA, Tasmania or the NT. If your debtor is there, you can still use our free template and send the letter yourself.

Sources