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The Commercial Demand Letter is a critical business document used in Canadian commercial contexts when formal requests for payment have been unsuccessful or ignored. It serves as an essential step in the debt collection process, typically deployed after regular invoicing and payment reminders have failed to secure payment. The document must comply with Canadian federal and provincial regulations regarding commercial debt collection, including the Limitations Act and Interest Act. A properly drafted Commercial Demand Letter includes specific details about the debt, payment history, current amount owing (including any legitimate interest charges), payment deadline, and potential consequences of non-payment. It's designed to create a clear record of the attempt to collect the debt and often serves as important documentation if legal proceedings become necessary. The letter should maintain a professional tone while firmly stating the creditor's rights and intentions, making it a crucial tool in commercial debt recovery across various Canadian business sectors.

1. Recipient Information and Date: Full legal name and address of the debtor, date of the letter

2. Subject Line: Clear identification of the purpose: 'DEMAND FOR PAYMENT' and reference number if applicable

3. Debt Overview: Brief introduction identifying the creditor and stating the existence of the debt

4. Debt Details: Specific amount owed, origin of debt, relevant dates, and any interest calculations

5. Payment History: Summary of previous payment attempts, communications, or partial payments

6. Legal Basis: Reference to the contract or basis for the debt

7. Demand Statement: Clear statement of the amount demanded and deadline for payment

8. Payment Instructions: Detailed information on how and where to make the payment

9. Consequences: Statement of potential legal action if payment is not received

10. Closing: Professional closing with contact information and signature block