Archive for the ‘Debt Collection’ Category

June 4th, 2010

More Company Debts

Posted in 2. Small Businesses & Bad Debts, My Business Tags: , , ,

Company debts are a norm in businesses and as small business owners, we all know a healthy cash flow is vital to a business.

Although the stressful period of retrieving my bad debt is over, I still have many customers that cannot pay up in full or delay the payment by 1 month or so.

April 14th, 2010

Why We Choose The Debt Collector – Case 1

Posted in 4. Recovering Bad Debts - Debt Collectors, My Business Tags: , ,

Why we decide to engage our first debt collector.

March 30th, 2010

The Pros and Cons of Engaging A Debt Collector

Posted in 4. Recovering Bad Debts - Debt Collectors Tags: , ,

When we chose to go with a debt collector, we received a lot of feedbacks that discouraged us from doing so. Basically, it was seen as a negative way of handling the situation.

From my own rationalization, these were the pros that outweigh the cons:

  • The debt collectors help to remove some stress in

March 1st, 2010

When To Recover Bad Debts Through The Small Claims Tribunal?

Posted in 3. Recovering Bad Debts - Small Claims Tribunals Tags: , , ,

Besides fulfilling the criteria listed in my earlier post, I have accessed my situation by considering these factors:

  • Whether the company will still be in business 6 months after I file my claim
    • Reason being that if the company closes down within 6 months, it may be harder to reach the respondent (debtor).
    • Also, by that by the time action is being taken

February 18th, 2010

What Types of Claims Can Be Lodged At Small Claims Tribunals

Posted in 3. Recovering Bad Debts - Small Claims Tribunals Tags: , , , , ,

If you intend to recover your bad debts through the Small Claims Tribunals, do proceed early as it may take longer than expected to recover your bad debts.

The claims must fulfil these criterias before you can file at the Small Claims Tribunals:

  1. The amount claimed must not exceed $10,000.
  2. The limit can be raised to $20,000 if all parties (Claimant and Respondent) consent in writing before the Registrar or Assistant Registrar.
  3. Amount

February 5th, 2010

Bad Debts Costly to Small Businesses

Posted in 2. Small Businesses & Bad Debts Tags: , , , ,

Did you know that from a survey done in UK, 47% of SMEs have no provision in place for bad debts or unpaid invoices? 34% will rely on legal action should they find themselves in such a situation, 27% would use their bank overdraft facility and 15% even plan to cover their shortfall with their own savings!

Unfortunately, even with good working relationship with suppliers and customers

February 3rd, 2010

More Warning Signs of Bad Debts

Posted in 1. Signs of Bad Debts Tags: , , , , , ,
  • The debtor does not return phone calls, letters or emails
  • Letters sent to debtor returned undelivered
  • The debtor’s family says he has moved but refuses to disclose his whereabouts
  • The debtor denies responsibility
  • The debtor asks you to sue him
  • The debtor

February 3rd, 2010

Useful Websites & Contacts

Posted in 5. Useful Websites & Contacts Tags: , , , , , ,

ACRA Bizfile - to purchase company’s & people’s profile

  • You’ll need to know whether the company is Pte Ltd because if so, they may be liable only up to a certain amount of  the debt and debt collectors may not be able to get much from them after they declare bankrupt
  • Reports cost only $5 each

Insolvency & Public Office Trustee -

February 2nd, 2010

Signs and Symptoms of Bad Debts

Posted in 1. Signs of Bad Debts Tags: , , ,

First few signs of impending bad debts:

  • A sudden increase in order
    • It may mean that the customer has lost credit with another supplier and is ordering more from you to fill the gap
  • Payment become increasingly slow
    • The customer may have cash flow problem
  • Groundless complaints about shipped

January 30th, 2010

Weighing the Odds & Taking a Calculated Risk

Posted in Debt Collection, My Business Tags: , , , , ,

I had an eventful day 2 days ago. As you may already know, I have been chasing a bad debt for some time already and we finally took action 2 days ago. Yeah!

When I first realised that the debtor has been pulling our noses along all these while, I decided to go all out to  claim back my rightful payment. But there were many routes

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