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Bryan Lui (Co-Managing Partner) []

Harneshpal Karamjit Singh (Co-Managing Partner) []

Chandni Anantha Krishnan (Partner) []

It is time to acknowledge that debts are of value only when it is collected. The longer a debt is left idle or uncollected, the chances are that you will lose the ability to do so.

But let’s be realistic on how to go about it.

The first step is to identify the financial ability of the debtor. Could they pay or are they simply refusing to pay or are they unable to pay?

Be it that they are unable to pay, would it be realistic for you to flash a court judgment to command them to pay? Oftentimes, No. This may escalate the matter for both parties given that the parties may still be in business together.

The better option would be to negotiate a payment structure and/ or a settlement arrangement, be it a compromise or a longer repayment period that the debtor could be able to satisfy and also beneficial to you.

The above discussion should be done tactfully as you may not want to unnecessarily offend a client or customer that may recur business with you. However, on the other hand, it is wise to minute the discussions be it verbal or written so that they could be used to minimize disputes at a later time.

Now, let's take it that they are refusing to pay. Whilst it may seem unequivocal to you, there is a need for budgeting of resources that you will be willing to use to recover the said debts. This helps in managing your expectations and analysis on whether the whole process will cost beneficial to your business. You will need to assume the position to decide whether you will be pursuing the debt.

The best way is deterrence.

Have a good file management system that includes correspondences, quotations, invoices, bills, receipts, etcetera. Have a good time management system in place to recover collectibles when it is due to minimize the chance of them being “conveniently forgotten”. Keep in mind that collectibles lose value over time.

Lui Bhullar has an in-house file management system that you could use.

Let’s move on to the usage of a letter of demand.

The first step is to determine whether you have a claim. In the context of business debt recovery, this would be in the form of unpaid invoices and at times even correspondences. This helps in showing the circumstantial picture of how the debt came to be, and what was the relationship between the parties.

Once the letter is prepared in a coherent manner and served to the debtor, it is now time to evaluate their response, whether they are disputing the debts, and their reason for doing so.

The opportunity to evaluate the response should not be taken lightly as this is the right set of circumstances to determine the chances of success in court and also the prospective business relationship between the parties.

This will indicate whether it is viable to pursue it through the legal process.

If it is viable to pursue via the legal process, the letter of demand will be one of the documents to indicate that you as the creditor have taken reasonable steps to recover the debts before pursuing it via the courts. As a matter of corporate governance, it is advisable to keep everything documented.

In terms of a letter of demand, it is not always necessary for it to be on the letterhead of a law firm, your own company’s letterhead is perfectly fine most times.


Our services range from high-volume, pre-legal debt collection to every aspect of litigation and insolvency action. We regularly advise on:

  • Pre-legal collection includes lettering, telephone debt collection, and trace and collect

  • Legal collection* including Court proceedings, mediation, enforcement and negotiation

  • Payment agreements include installment monitoring, chasing defaults, and regular installment assessments

  • Insolvency action* includes bankruptcy, winding up, advice on debtor’s petitions

  • General debt recovery advice including Pre-Action Debt recovery, compliance, process review, credit control, and credit management advice

Now that you have read the summary of what we have to say to our clients in terms of debt recovery, do not hesitate to drop us a message or call should you have further questions.

We are also open to your proposals should you have any.

Do get in touch with us at for any queries regarding this Write-Up.

Lui Bhullar's Official WhatsApp : +60143000960

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