Debt Recovery in Singapore
Long-overdue invoices can significantly impact your operations, hindering your cash flow, reducing inventory turnover, and perhaps even tarnishing your company's reputation and credit rating. Timely debt collection is crucial for business continuity, necessitating a robust strategy for managing and retrieving overdue payments. For non-contentious debts of up to S$20,000, you may consider filing your claim at the Small Claims Tribunals for cost-effective resolution without legal representation. However, you may opt for civil claims with legal asistance, as the lawyers can evaluate your chances of recovery and advise you on the best recovery strategy.
Debt Recovery Solutions
Often, companies seek external professional legal help to recover debts when customers stop responding to their reminders for settlement of long overdue invoices. Most debt recovery cases start with a Letter of Demand and then an Amicable Resolution Offer (ARO). If the debtor still does not pay up, you may consider filing an Originating Claim against the debtor, and then obtaining a Court Judgment. Upon receiving the court judgment, you can enforce the judgment through various avenues, such as seizing and selling moveable assets. For debts of more than S$15,000, initiating bankruptcy/winding up proceedings may serve as a motivator for repayment.
At Kinetica, we are able to seamlessly facilitate your debt recovery processes with Kelvin Chia Partnership ("KCP"). Based on the specifics and complexities of your case, KCP will recommend the best strategy to encourage the debtor to negotiate, or to seek recovery of the unpaid amounts via the civil litigation process. KCP will also conduct the necessary due diligence and background checks on the debtors to support the recommended strategy. For example, if there is already a bankruptcy application against an individual debtor filed by other creditors, KCP will wait for the result of the bankruptcy and file a Proof of Debt where applicable.
