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Accounts Receivable Demand Letter for Hong Kong

Accounts Receivable Demand Letter Template for Hong Kong

A formal written demand for payment under Hong Kong law, used to request immediate settlement of outstanding accounts receivable. The document serves as an official notification to the debtor of their payment obligation and typically precedes legal action. It must comply with Hong Kong's debt collection regulations and contract law principles, including the Limitation Ordinance and Contract and Rights of Third Parties Ordinance. The letter details the outstanding amount, payment terms, deadline for response, and potential consequences of non-payment, while maintaining professional standards and compliance with Hong Kong's Personal Data (Privacy) Ordinance.

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Accounts Receivable Demand Letter

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What is a Accounts Receivable Demand Letter?

The Accounts Receivable Demand Letter is a crucial document in Hong Kong's commercial debt collection process, typically used when standard invoicing and reminder procedures have failed to secure payment. This document serves as a formal, often final, attempt to collect payment before initiating legal proceedings. It must be drafted in accordance with Hong Kong law, particularly considering the Limitation Ordinance and debt collection regulations. The letter should clearly state the outstanding amount, reference relevant invoices or contracts, specify payment terms, and include a reasonable deadline for response. It's essential to maintain a professional tone while firmly establishing the creditor's right to payment and the debtor's obligation to pay. The document typically includes supporting evidence such as invoice copies, payment histories, and contract terms, making it a comprehensive record of the debt claim.

What sections should be included in a Accounts Receivable Demand Letter?

1. Sender Details: Full legal name, business address, and contact information of the creditor

2. Recipient Details: Full legal name and address of the debtor, including any relevant business registration numbers

3. Date: Current date of the demand letter

4. Reference Line: Clear subject line identifying this as a formal demand letter and including relevant account/invoice numbers

5. Debt Details: Specific amount owed, original due date, and reference to underlying contract or transaction

6. Payment History: Brief summary of previous payments made (if any) and current outstanding balance

7. Formal Demand: Clear statement demanding immediate payment of the specified amount

8. Payment Instructions: Specific details on how and where to make the payment

9. Response Timeline: Clear deadline for response or payment (typically 7-14 days)

10. Signature Block: Official signature, name, and title of the sender

What sections are optional to include in a Accounts Receivable Demand Letter?

1. Interest Calculation: Include when claiming interest on the outstanding amount, showing calculation method and period

2. Previous Communications: Reference to prior collection attempts when multiple reminders have been sent

3. Payment Plan Option: Offer of payment plan terms when willing to accept installment payments

4. Legal Consequences: Warning of potential legal action if payment is not received, used in final demand letters

5. Without Prejudice: Include this section when the letter contains settlement offers or negotiations

6. Disputed Items: Address any previously disputed items or discrepancies when relevant

What schedules should be included in a Accounts Receivable Demand Letter?

1. Statement of Account: Detailed breakdown of all relevant invoices, payments, and current balance

2. Copy of Original Invoice(s): Copies of all unpaid invoices referenced in the demand

3. Payment History Log: Chronological record of all payments and attempts to collect

4. Contract Extract: Relevant sections of the original contract regarding payment terms

5. Previous Correspondence: Copies of prior reminders or communication regarding the debt

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Hong Kong

Document Type

Demand Letter

Cost

Free to use
Relevant legal definitions

























Clauses


















Relevant Industries

Financial Services

Professional Services

Manufacturing

Retail

Wholesale Trade

Construction

Technology

Healthcare

Education

Logistics and Transportation

Real Estate

Consulting Services

Industrial Services

Media and Entertainment

Telecommunications

Relevant Teams

Finance

Accounts Receivable

Legal

Treasury

Credit Control

Corporate Services

Risk Management

Collections

Financial Operations

Business Administration

Relevant Roles

Credit Controller

Accounts Receivable Manager

Financial Controller

Chief Financial Officer

Credit Collection Specialist

Finance Manager

Accounts Manager

Legal Counsel

Corporate Lawyer

Business Owner

Company Director

Credit Risk Manager

Treasury Manager

Debt Collection Officer

Finance Director

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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