Having drawn from the expertise of Atradius Collections' local offices, the International Debt Collection Handbook explains the different regulations and procedures for debt collections in Singapore.
Amicable collections
General information
We maintain a professional collection process and focus on the relationships between you and your debtors at all times. Our team of collection specialists carry out the collection process in-house. We contact debtors both verbally and in writing while adhering to federal and state law. Our activities are in compliance with local law and regulations and will be conducted in a non-aggressive yet efficient manner.
By outsourcing the collections of your internal debts to a third party, you and your team will be able to make use of the saved time to engage in other productive tasks for your business. As we adopt the no-collection-no-fee method, this is essentially a free service for your company as no charges will be incurred if we fail to collect. Finally, it sends a clear message to your debtors of your intent to collect the payment.
The amicable phase starts by conducting due diligence checks on the background of the debtor through our networks and partners such as credit report providers. Reminder letters will be sent via post and email in the dunning phases, and negotiations will be conducted via call and face-to-face meeting if necessary. Visits to the debtor’s registered office address may be made to assess the operational status of the company. Visits to the debtor company’s directors’ residences are strictly prohibited.
Interest
We use the clauses or agreements already made between the parties in a credit application or the terms and conditions as the legal basis for any interest charges. Otherwise, from a cultural point of view, Singaporean debtors very rarely agree to pay late payment interest. It’s often used as a negotiation tool between debtors and collectors.
After the commencement of court action, the debtor will have to pay interest at 5.33% per annum from the date of the filing of the writ of summons.
Debt collection costs
Charging debtors for debt collection costs isn’t common in Singapore. Often, late payment interest is used as a negotiation tool between the debtors and collectors if such clauses are imposed by the creditors and stated in the contracts.
The Debt Collection Handbook presents a snapshot of Singapore's economic situation and covers the following topics:
- Legal procedures & legal system
- Insolvency proceedings
To read more about the steps and procedures undertaken in debt collections in Singapore and other countries: