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Definition
A statutory demand is a formal written demand for payment of an undisputed debt, and a step that can precede winding-up proceedings if ignored. Used carefully, it is a powerful credit-control tool against a customer who can pay but will not.
In plain terms
Serving a statutory demand signals you are serious, and a debtor company that fails to pay or dispute it within the period risks a winding-up petition. It is a last resort for genuine, undisputed debts, not a routine chaser.
Why it matters
It should be used only for clear, undisputed debts and ideally with advice, but knowing it exists strengthens your hand. See bad debt and how to chase overdue invoices.
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