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Payment plans and finance

Demand letter

A formal notice to a buyer to pay an instalment that has fallen due, stating stage, amount, GST, due date and the bank account to pay into.

Also called: payment demand, demand note

A demand letter asks the buyer to pay a specific instalment by a due date. In a construction-linked plan, it is raised when a stage is completed. Banks use it to release loan tranches.

  • Buyer names, unit and project, with RERA registration number
  • Stage reached and percentage due
  • Amount, GST and total payable
  • Due date and interest on late payment
  • Designated bank account details and payment reference
  • Amounts received so far and outstanding balance

The most common failure is delay. Demands are raised weeks after a stage is reached because someone has to prepare hundreds of letters by hand. LeadOne AI raises demand letters for the units at a stage together, from the same buyer ledger.

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