The Accounts Receivable Demand Letter is a critical business document used when formal collection efforts are necessary for outstanding payments in Malaysia. It represents an escalation in the collection process, typically sent after regular invoices and payment reminders have failed to secure payment. This document must comply with Malaysian legislation, including the Contracts Act 1950, Limitation Act 1953, and relevant debt collection regulations. It serves multiple purposes: formally documenting the demand for payment, establishing a clear timeline for response, and creating evidence of collection attempts before legal proceedings. The letter includes specific details about the debt, payment history, and consequences of non-payment, while maintaining professionalism and legal compliance. Companies across various sectors use this document type to manage their accounts receivable and maintain healthy cash flow.

1. Sender Details: Full business name, registration number, and complete contact details of the creditor

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

3. Date and Reference: Current date and any relevant reference numbers for the debt or account

4. Subject Line: Clear indication that this is a formal demand for payment

5. Debt Details: Specific amount owed, date(s) of original transaction(s), and invoice reference numbers

6. Payment History: Summary of any previous payments made and remaining balance

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

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

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

10. Consequences: Statement of potential legal action if payment is not received by the deadline