Notice of default, private loan of $18,000, Ashdown to Brennan
Notice of default template that gives a real chance to fix it
A notice of default has to identify the loan, show exactly what is overdue, give the borrower a fixed date to put it right, and say what happens if they do not. This one page notice from a private lender after two missed instalments on an $18,000 business loan does that with an arrears table, a 30 day cure period and the acceleration clause quoted.
The document, page by page
Every page as it renders and as it prints, with nothing summarised. Read the wording before you reuse it.
Section by section
What each section is for, so you can keep the ones you need and drop the rest.
- Letterhead and addressee
- Lender's monogram letterhead, the date and delivery method, and the borrower.
- Subject and loan details
- The agreement date, amount, rate, term, instalment and which months were paid.
- Arrears table
- Two missed instalments with late fees, totalling $1,645.54.
- Cure period callout
- 30 days to pay by 4 November 2026, how to pay, and the October instalment.
- If the default is not remedied
- Acceleration under clause 9.3 and possible recovery proceedings.
- Talk to me first
- An offer to agree a written plan within the cure period, then the lender's signature block.
How to adapt this document
First, if the default is a broken promise other than payment, such as failing to keep insurance on a financed asset, replace the arrears table with the clause breached and the evidence, and set out what remedy is needed by the cure date. Second, if a guarantor signed the loan, send a copy of the notice to them at the same time, because many guarantees require it before the guarantor can be pursued. Third, for a regulated consumer loan, use the statutory default notice wording and timing for your country rather than this form.
Regulated loans have their own rules
This is a private business loan, so the agreement sets the rules. A regulated consumer loan is different. In the UK, sections 87 and 88 of the Consumer Credit Act 1974 require a default notice in a prescribed form, giving at least 14 days to remedy before the lender can act. In Australia, the National Credit Code in the National Consumer Credit Protection Act 2009 requires at least 30 days. Check which regime applies before you send.
What makes this document work
The arrears are exact to the cent
Two rows show each missed instalment of $797.77 with a $25.00 late fee, $822.77 each, and the total of $1,645.54. The instalment matches the loan terms of $18,000 at 6 percent over 24 months. A borrower who can see the arithmetic has nothing to dispute and one number to pay.
The cure date is a calendar date
The callout says pay $1,645.54 by Wednesday 4 November 2026, 30 days from the notice, and reminds the borrower that the October instalment is still due on 15 October. Stating the date removes any argument about when the 30 days started or whether weekends counted.
The consequence is quoted, not threatened
The acceleration paragraph cites clause 9.3, states the balance that would fall due, $15,299.55 at 15 September plus $50.00 in fees, and says recovery may include court. Quoting the clause and the figure makes the consequence a fact the borrower agreed to, not pressure the lender invented.
Questions people ask
What is a cure period?
The time a borrower has, after a default notice, to fix the default before the lender can use its stronger rights, such as calling up the whole loan. This loan's clause 9.2 gives 30 days. Many loan agreements set 14 or 30 days, and regulated consumer loans often have a statutory minimum.
What does acceleration mean in a loan?
An acceleration clause lets the lender demand the whole unpaid balance at once if a default is not fixed, instead of waiting for each instalment. Here, if the $1,645.54 is not paid by 4 November, the full $15,299.55 balance plus fees falls due. The clause only works if the loan agreement contains it.
Do consumer credit laws apply to a private loan?
It depends on the lender and the purpose. Consumer credit laws generally apply to lenders in the business of lending to individuals for personal purposes. A one off loan for a business, as here, usually falls outside them, but if your loan is regulated, the default notice must follow the statutory form and timing.
Should a late fee be in a default notice?
Only if the loan agreement provides for it, and only at the agreed amount. This loan charges $25.00 per missed instalment, so the table shows $50.00. A fee that is not in the agreement, or one far above the lender's real cost, may be unenforceable and makes the whole notice look unreasonable.
How should a default notice be delivered?
In the way the loan agreement says notices must be given, usually by post to the address in the agreement and often by email as well. This one goes by email and registered post. Keep proof of both, because the cure period runs from the date the notice is given and may be disputed.
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