Singapore lacks specific frameworks regarding the process of collecting debts because this city-state enjoys a good Days Sales Outstanding (DSO). The country also nurtures a good payment culture, so the late payment registration is very rare. Insolvency Law is the only legislation refers to companies in Singapore with late payments. According to this law, most debt collection procedures are conducted in court.

Amicable settlement between parties is the primary step towards debt recovery in Singapore. Most debtors agree for amicable settlement. If it fails, the assets of the company are assessed before starting legal proceedings. To check the activities of the company, verification with Singapore Companies Register is also conducted. The solvency status of the debtor should also be verified. It is important because after starting an insolvency procedure, debt recovery is not possible. If it is possible, debtor must be notified regarding the outstanding amount by sending dunning letters. Debt collector can meet the debtor for an amicable settlement, if the debtor is not ready to respond to dunning letter.

Previously, the debt collection service was not treated as a specialized job and it was handled by the legal departments of banks and money lenders. Business was using the litigation tool to recover debt. But it has some limitations due to winding and long court proceedings in Singapore legislation. As a result, foreign banking firms introduced the concept of specialized debt recovery services in Singapore. The debt recovery business in Singapore has also grown greatly due to the higher borrowing costs, universal financial slowdown and rising inflation.

Lending money is quite normal in the world of business. Various well established lending companies also provide loans to different business organizations. But unfortunately, almost all money lending companies suffer from non-payment of debts by various debtors. These loans are given after taking all details from the debtors. Therefore, when debtors fail to repay the money, the lending agencies can adopt proper debt recovery strategies.

Debt is a decisive factor in business world. Most business firms take debts and they show the amount of total debt at their balance sheet. But, money lenders need to recover debt within a specific period, which is essential for keeping their liquidity. If they are not able to collect these debts within due date, these are considered as bad debt. Money lending companies are liable to treat these bad debts in financial statements. So, the money lending companies support some efficient debt recovery agencies in Singapore. Adopting the expert assistance and consultation from these debt collection agencies are the best and only way to recover business debts within the time limit. Every debt recovery agency must adhere to stable and specific strategies to assemble debts. The collection agencies cannot recover debt in time if it lacks proper strategies.

Your organization can reduce costs, maximize resources and save time if you develop more focused debt collection strategies. The most important strategy is to locate hard-to-find debtors and get most updated contact information. Constant database update is necessary for undertaking this task. It helps you to locate elusive debtors and collect unpaid debts.

It is essential to develop a more focused collection strategy. It can be determined by checking the accounts that have highest payment potential. Collection agencies that use advanced segmentation and scoring tools can stay ahead of the competition. Portfolio monitoring helps to increase further debt recovery, which can be maximized by adopting new testing strategies and analyzing industry trends.

Generally, all debt collection companies offer the same services. But, due to the complexities in collecting delinquent accounts, very few companies prove to be competent. You must select the best debt recovery company in Singapore to recover your money. So, you should be very careful while selecting a company.

Before hiring a business debt recovery agency, you should evaluate that whether you need the service of a debt collector or not. When you assign the job to another company, you must consider the cost and reputation of your company.

If you think that you cannot recover the debts without the help of a collection agency, then you should find a credible company. Collection agencies in Singapore can operate without a license. So, it is very difficult to determine the professional expertise of existing companies. So, you should check the track record of the debt recovery agencies before hiring.

You must also consider the suitability of the types of delinquent accounts and nature of your business with the experience and expertise of collection agency. Some business debt recovery companies are more efficient in handling particular types of problematic accounts. Some are more knowledgeable to handle the needs of firms in a certain industry. But, some have experience in dealing with accounts amounting to specific range. So, you must select a collection agency that suits your business and needs.

Ethics, experience and expertise are the three most important factors you must consider while hiring a debt collection agency. Debt collectors must be experts in debt recovery techniques, which observe diligence and sound judgment. Professional debt collectors must have good experience on recovering debts. Professionals with long years of experience in dealing a variety of cases will be beneficial for your business. Though the cost has significant role, you will get excellent benefits from experts who know their jobs well. You must also observe companies that follow sound practices.

Small businesses extend their credit arrangements to customers constantly. As a result, they land in bad debts. Such business organizations lack internal mechanisms or expertise to chase their debts successfully. So, they incur huge losses. An experienced and efficient debt collection agency can recover bad debts and reduce debt burden effectively. Business debt recovery agencies can also facilitate the growth of business.

Large business organizations also suffer from bad debts. Poor debt management may lead to the closure or collapse of a business organization. But, the best debt collection agency can help you to save your money and time, make money and maintain relationships.