Top-Rated Debt Collection Agency in Singapore
Fast and reliable debt collection in Singapore - no upfront costs, only pay for success. Request a FREE Consultation or upload your claim today.
In Singapore, the simplest method to retrieve your debt is by using debt collection services.
Debitura is an expert in debt recovery services in Singapore, where our team of adept professionals offers a comprehensive range of solutions. Our services include accounts receivables management, debt collection notices, pre-legal and legal debt collection, and enforcement court proceedings. Leveraging our proficiency in Singapore debt collection regulations, we ensure a swift and effective recovery of outstanding debts, making us the go-to choice for businesses struggling with debt recovery.
We provide unwavering assistance throughout the entire process.
Tailored debt recovery plan.
We have a team of over 500 experts who specialize in international debt collection.
Achieving a success rate of 87% at the most cost-effective price.
Collectius CMS (S) Pte Ltd has been operating in Singapore for over 20 years and we have work with major retail banks in Singapore and also the agency with the most BNPL servicing portfolio. Our main services are Debt servicing, Debt Aquisition and Factoring. Apart from our services we and also looknig into Merger and Acquisition of companies that can help boost our organization's business revenue income.
We investigate misappropriation of assets, corporate fraud and misconduct. The proliferation of such incidences across territories requires close coordination between interested parties, regulatory authorities, enforcement agencies and private actors. We assist out client throughout the process of investigation, asset-tracing and recovery. Our team has experience recovering assets in multiple jurisdictions leveraging on our global network of partner firms. Our team utilises a variety of legislative and judicial tools to secure our client’s claims and advise our clients with the best possible strategy to ensure that our clients’ interests are protected.
UCC is an international Australian company which started operations in 2006. We have since grown to include most of ASEAN. We use advanced IT systems and abide by the EU GDPR and Australian and Singapore privacy laws. We are members of the TCM Group and IACC.
We are a law firm established since 1991 with lawyers having a combined experience of over 88 years in debt collection and other areas of legal practice. When you choose us, we are at once your support in Singapore, relied upon to frame creative solutions that will play out well with your context and needs.
The ultimate guide about debt collection in Singapore
If you are owed money by a business or customer in Singapore, we can help you! We have helped hundreds of businesses in Singapore recover debt.
Collecting a debt in Singapore can be difficult because of the language and cultural barriers, foreign laws and customs, and distance. But it is simpler when you use a collection agency that knows the laws and customs of Singapore.
At Debitura, we prioritize people. We do everything we can to get your money back while still having a good relationship with the customer. Our public relations efforts are strategic and fair, but also firm. This way, we can make sure that your reputation is always our top priority! If you want to learn more about how to collect debt in Singapore yourself, continue reading this guide. If you would rather work with a local law firm that specializes in debt recovery in Singapore, we can help you with that too.
At Debitura, we make it easy for you to collect your debt in Singapore and +192 other countries. To get started, upload your claim today. We will review your case within 24 hours and provide you with 3 free quotes from local debt collection lawyers in Singapore. We use both people and technology to get the results you need while preserving customer relationships. In addition, we have a network of debt collectors, attorneys, suppliers and vendors that we work with closely. We value all of these relationships equally.
Begin your debt collection process in Singapore today at no charge. Simply create a free profile and upload your case, which takes only 2 minutes.
Our pre-legal recovery process is proven to work. We'll try to collect your claim for the first 3 months under our 100% no-cure-no-pay policy.
If your claim remains unpaid during the pre-legal phase, we offer you three quotes from debt collection attorneys in your area.
You get access to our online portal where you can track your case in real-time
Introduction to collecting debt in Singapore
Do you have trouble collecting money that people owe you in Singapore? Do not worry; we make it easy for you to get paid by your Singaporean customers. When collecting debt in Singapore, the party who owes the debt is called “the debtor”, and the party who has issued the debt or invoice is called “the creditor”. If the original creditor collects the debt himself, this is called “first-party collection”. If the creditor outsources the collection process to a third party, this is called “third-party collections”.
- Domestic companies usually pay on time. This is called DSO. But sometimes people don't pay on time. The law does not say what to do in this situation. Usually, people look at the contract to see what it says about late payments.
- Overall, legal action is still expensive even though the court system works pretty well.
- The insolvency framework meets international standards. However, in practice, it would be hard to get money from people who cannot pay their debts, like in most countries.
Days Sales Outstanding (DSO)
The payment culture in Singapore is good. This means that people usually pay their invoices within 30 to 60 days, depending on the industry. Late payments are rare. However, the DSO for listed companies has been increasing over the past few years.
Common payment types in Singapore
The most common payment methods are:
Most of the time, people in Singapore use a check or open account to buy things, which means that the person receiving the payment does not have to wait for the money. Bank transfers are also a popular way to pay for things, especially between different countries. This is because it is fast and secure. When someone buys something from another country, there is usually an insurance policy that protects the seller in case the buyer does not pay.
Allianz Trade has a network of risk offices all over the world. These offices keep track of how well our customers are doing financially and give them a credit limit, which is the maximum amount of money they can spend with us. If something goes wrong and they can't pay us back, we will use the money from their credit limit to cover what they owe us. Alternatively, we can also use something called a Standby Letter of Credit, which is basically when a bank promises to pay us back if the customer doesn't have enough money. This is often used when we make deals involving shipments because it guarantees that we will get paid even if the customer doesn't have the money to pay us back.
Documentary Letters of Credit are becoming more popular. This is when one person guarantees that another person will get money from a bank, as long as the terms that they agreed on are met. People may be able to negotiate down payments and get bank guarantees, but these things usually come at a cost.
The main types of corporate structures are sole proprietorships, partnerships, and corporations
The legal structure of a business determines who is responsible for the business's debts.
- If you have a small business that is run by one person, this is called a Sole Proprietorship. In this case, the owner is responsible for any debts that the business has. If two or more people own the business together, this is called a Partnership. In a Partnership, each person may be held responsible for the actions of the other partners. There is also something called a Limited Liability Partnership, which offers limited liability to the partners.
- Limited Liability Companies are the best legal entities because you don't need very much money to start them approximately EUR 600. The partners' liability is also limited to their contribution. Joint-Stock Corporations are used for businesses that want to divide their capital into tradable shares. In these entities, the shareholders' liability is only worth the value of their shares.
- Foreign companies may come to Singapore and set up a Representative Office. This is a place where they can learn about the market and talk to people, but they are not allowed to make any money. Branch Offices are more common when doing business, even though these places are not separate from the parent company’s legal structure and thus offer no liability limitations. Thus, subsidiaries tend to be set up through Private Limited Companies.
The debt collection process in Singapore
In Singapore, the debt collection process is done in several steps.
The image below shows the process we use to collect debt in Singapore:
1 Upload your claim:
If you want someone to help you get your money back, you need to find a debt collector. You can upload your claim to their website. Debitura will give you 3 quotes from local partners in the Asia country that is related to your case. This is free - there are no strings attached.
2 Amicable collection:
The collection process begins by sending reminders to the person who owes you money. This is called the debtor. The reminders will be sent via email, SMS, letter, and any other available communication channels in the specific country. The goal is to get the debtor to pay or acknowledge the debt and start a payment plan. Debitura offers a no-cure-no-pay solution for amicable collection. Amicable collections with Debitura are 100% risk-free!
If you have not received payment from the debtor after trying to work things out, it is time to look at what to do next. We will look at the size of your claim, the chances of getting paid and other factors to help you decide what to do next. There are three common next steps:
If your claim is less than 2,000 to 5,000 Euros, it is not worth it to take any more legal action. In this case, we recommend "debt surveillance." This means that we will keep trying to contact the person you owe money to and try to reach an agreement.
B: Legal collections:
It's a good idea to start a legal process for bigger problems. The steps you need to take will depend on what kind of problem you have and how big it is. Usually, it takes around one and a half to one and a half and a half years to solve the problem this way.
C: Debt enforcement:
If the person you are owed money from has agreed that you are owed money, or if there is a court order, you can go to the bailiff's court to get your money.
At Debitura, we can help you with all three steps in Singapore.
Amicable collection in Singapore
At Debitura, we offer a 100% risk-free and efficient process for Amicable collections. This means that you can submit your claim to us, and we will get started on it within 24 hours.
We will contact your debtor using all available methods in Singapore, which may include email, text messages, letters, phone calls, and social media.
The goal of this process is to:
A) Get them to pay the full amount all at once.
B) Get them to agree that they owe the money and make a plan to pay it back in smaller amounts over time.
If the person you are trying to get money from has said that your claim is not true, you cannot try to work things out peacefully. You must start by going through the legal process.
Late payment interest
The interest for late payments must be agreed upon and put in writing during the contractual negotiations. In practice, interest would be used as a tool to help collect the debts.
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amicable debt collection
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Legal collection in Singapore
If we have not been able to get the money for you during the first phase or the person who owes you money disagrees with you, we will give you 3 free quotes from our local debt collection attorneys. In the legal phase, our local attorney will reach out to your debtor and try to negotiate a payment. Our partners can also go to court and get a payment order through the legal system in Singapore. This payment order can then be used to force your debtor to pay via enforcement court.
You should start by sending a letter that asks for the money you are owed. This is called a Demand Letter. The letter should say how much the person owes you, including any interest (as agreed to in the contract or as set by law), and that you are willing to negotiate. In Singapore, there is no fast way to get money from someone who owes you money. Even if the debt is certain and undisputed, you have to go through a normal lawsuit, which takes time. If you need the money urgently, you can try to get an earlier hearing date.
If someone owes you money and they will not pay you back, you can start a legal action against them. This means you can go to court. The first step is to send them a Writ of Summons. They will have 8 to 14 days to write a defence. If they do not pay the money or write a defence, the court can make a default judgment against them. If they do not accept the Writ of Summons, this does not stop the person who owes the money from going to court.
After a lawsuit is filed, the court will have hearings to look at the evidence from both sides. The court will also listen to what both sides have to say and consider any witnesses before making a decision. If the person being sued does not have a good defense or does not raise any counterclaims during the proceedings, the court may render a summary judgment. This would be done to avoid any further delays in the process.
The Singapore Court System has Magistrate Courts, District Courts, High Courts, and the Court of Appeal.
The High Court is a court that hears cases. Some cases are about crimes and some are about disagreements between people. The amount of money involved in the case will determine which court is the right place for the case: in general, cases involving claims that are less than SGD 60,00 approx. EUR 38,000 are dealt with by the Magistrate Courts whereas claims that are less than approx. EUR 160,000 are dealt with by the District Courts. The courts are separated into different areas, but they do not have different jobs. The courts usually work well and without help, but taking legal action would still be expensive.
The amount of money you will need to pay a lawyer depends on how big and complicated your case is. To get the best price, ask for quotes from more than one lawyer. You can do this easily by using Debitura.
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legal debt collection
Upload your claim and get 3 FREE quotes from our local collection partners.
Debt enforcement in Singapore
You can use the bailiff's court in Singapore to get your money if you have a written note from the person you owe money to, or a court order.
As soon as a judgment becomes final, it can be enforced. This means that if the debtor does not pay what they owe, the creditor can ask the court for an order that makes the debtor do what they are supposed to do. This could be in the form of making them pay money, or giving them something that they are supposed to have. The court could also take away some of their things and sell them, or get money from someone else who owes the debtor money. Punitive damages can only be given in special cases.
The way to do this and how much it will cost is different for everyone. To find out, upload your information to Debitura. They will give you three different quotes based on your claim within 24 hours.
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Upload your claim and get 3 FREE quotes from our local collection partners.
Insolvency proceedings in Singapore
The final stage you can initiate if your debtor is unable to pay his debts is an insolvency procedure. The goal of this procedure is to liquidate, or sell, the debtor's assets and distribute the money amongst the creditors following the debt priorities.
- The law does not provide for specifically designed out-of-court proceedings.
- There are some options when restructuring a debt, such as a scheme of arrangement or judicial management.
- If the debtor fails to fulfil its obligations, the reorganization will be terminated and the company's assets will be liquidated.
- Creditors' claims are governed by the Companies Act and priority is given to secured creditors, followed by preferential unsecured creditors, then unsecured creditors.
- A liquidator or judicial manager has the power to set aside unfair preferences and transactions undervalue given when a company was insolvent or as a result of which the company became insolvent.
Our analysis has shown that the risk of conducting business in Singapore is low. Based on this low score, You can feel reasonably confident that you will be able to get paid when trading with customers in Singapore. Nonetheless, we always recommend doing a specific credit analysis on an individual customer basis before offering any credit. The low risk score is based on the following factors:
The economic risk in Singapore
Our conclusion based on the economic risk factors, is that the economic risk in Singapore is very low (1 out of 6). An economic risk of 1 out of 6 is low in Asia.
GDP and economic growth are critical drivers for economic risk.
The GDP of Singapore is 396,99 bn. USD (2021), growing by 7,61% per year.
In terms of the size of its economy, Singapore ranks #36 out of 183 countries and has a large economy.
In terms of growth rate, it is ranked #34 out of 183 countries and is therefore considered a fast-growing economy.
GDP per capita is 72794 USD, ranking Singapore number #6 out of 183 countries. The result of this is purchasing power of citizens in Singapore is high compared to the rest of the world.
You can see a more throughout picture of GDP and economic growth in Singapore in the table below:
Another big impact for the risk score is the inflation rate and the interest rates. You can see a more throughout picture of monetary KPIs in Singapore in the table below:
The inflation in Singapore was 2,3% in 2021 which is considered a low inflation rate.
Businesses has an interest rate which is 5,25%.
The business environment risk in Singapore
Our analysis shows that the business environment risk in Singapore is very low (1 out of 6), which is a low risk score in Asia.
Economic freedom and rights has a big influence on the business environment risk in a country. You can see the critical facts for Singapore in the table below:
As you can see in the table, the property rights index is 98 in Singapore, which is considered good in Asia.
The business freedom index is based on 10 indicators, using data from the World Bank’s Doing Business study. The Index is 94 in Singapore, a good score for a country in Asia.
Singapore's overall economic freedom index is 90 out of 100 and is based on factors such as the rule of law, regulatory efficiency, and market openness.
The political risk in Singapore
The political risk in Singapore is very low, with a score of 1/6. This is a low political risk score in Asia.
The governance and political stability indicators are vital drivers for political risk. An overview of Singapore can be seen in the data below:
The rule of law index analyses to which extent agents have confidence in and abide by the rules of society, in particular the quality of contract enforcement, property rights, the quality of the courts, and the police's ability to enforce court orders.
When trading with businesses in a country, the rule of law index is critical as it describes your ability to enforce commercial contracts.
In Singapore, the rule of law index is at 1,86 points, with the score going from -2.5 (weak) to 2.5 (strong). Singapore has, therefore, a very high rule of law index, which means you have a very good chance of enforcing your contracts. If your individual customers have good creditworthiness, you should therefore feel relatively safe when providing credit.
Other drivers for the very low political risks are the very strong control of corruption, the strong political stability index, and the small shadow economy that is 9,2% of Singapore's GDP.
The commercial risk in Singapore
In Singapore, the commercial risk score is 1/4, which in our model is a very low score. This very low commercial risk score is low compared to the average in Asia.
The commercial risk is impacted by a country's international trade relationships. You can see some of the key facts for Singapore in the table below:
Singapore has a foreign exchange reserve of 425.1 bn. USD.
Singapore has a positive trade balance of 31,36% of GDP. This means that Singapore imports fewer goods and services than the country exports.
The annual growth of exports of goods and services has been growing 6,8% annually - now 184,84% of GDP. Import of goods and services represents 153,47% of the GDP in Singapore.
The financing risk in Singapore
We have calculated the financing risk to be 1/4, which equals a very low risk. A very low financing risk score is low for countries in Asia.
The country's banking system, efficiency, and stability influence the financing risk. You can find the critical facts for Singapore in the table below:
In Singapore, the credit information sharing index is 7 on a scale from 0 (low) to 8 (high). The result of this is accessibility and quality of credit information available in Singapore is medium-high.
This makes it easy for you to understand the credit risk of your counterpart in Singapore. Based on this, it should be possible to to find a good local credit rating agency that can help you analyse the creditworthiness of your specific customers.
Your rights as a creditor are 8 out of 12 and, therefore, medium.
The very low financing risk for creditors also impacts the medium interest rate in the private sector of 5,25%.
Debt Collection FAQ for Singapore
When collecting debt in Singapore, the person who owes the debt is called "the debtor" and the person or company that issued the debt or invoice is called "the creditor". Domestic companies usually pay on time, but if they do not, legal action can be taken. The debt collection process typically includes reminders to the debtor, evaluation of the claim and collection method, such as surveillance, legal collections, or debt enforcement. Debitura can help with all three steps in Singapore. Amicable collections with Debitura are risk-free.
The debt collection process in Singapore involves three steps: pre-legal collection, legal debt collection, and debt enforcement. Pre-legal collection involves reminders to the debtor to pay or come to an agreement. Legal debt collection involves starting a legal process for bigger problems, which can take around one to one and a half years to solve. Debt enforcement involves going to the bailiff's court to get your money if there is a court order. Debitura can assist with all three steps in Singapore.
In Singapore, if a debt is disputed, a civil lawsuit is required, and legal actions require a local lawyer. Debt enforcement and insolvency proceedings are also options. The courts in Singapore are separated into different areas based on the amount of money, and taking legal action can be expensive. If restructuring a debt, a scheme of arrangement or judicial management can be used before liquidation. Creditors' claims are governed by the Companies Act, and priority is given to secured creditors, followed by preferential and unsecured creditors.
Debt collection cost in Singapore varies depending on your case's specifics and desired actions. Debitura offers a no-cure-no-pay model for pre-legal debt collection with a success fee ranging from 10-20%. For legal actions, the price varies case by case. Debitura can provide you with 3 quotes from Singapore's best debt collection lawyers.
The timeline for debt collection in Singapore varies depending on the debtor and the case. If the case can be resolved in the pre-legal phase, which usually takes 3-6 months, the process is relatively short. However, if legal action is required to collect the debt, it typically takes 12-18 months to resolve. It's important to work with experienced debt collection professionals to help navigate the process and increase your chances of success.