Demand Letter

December 10, 2013  |     |     |   0 Comment

A demand letter is a legal document usually prepared and sent by an attorney on behalf of a creditor to a debtor to request a debt payment. Generally, a demand letter is sent only after the payment is significantly overdue and other methods of requesting payment have been attempted.

This kind of letter can apply to website deals which involve seller financing if the website buyer has not made a scheduled debt payment to the seller. If the buyer eventually does not make the payment, the collateral used to secure the debt can be foreclosed on by the seller. In order to avoid such a scenario, it is important for the seller to carefully analyze the buyer’s ability to repay in the first place.


Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.

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