Businesses (creditors) who wish to make a claim against another business (debtors) for a debt arising from contract should follow the State Courts’ pre-action protocol for business-to-business debt claims (the “Protocol“).
A creditor must comply with the framework in the Protocol before commencing any lawsuit in the State Courts.
A debtor must respond to a letter of claim within 14 days of receipt (or the timeline in the letter if earlier).
The Protocol stipulates certain material information and documents which must be provided by the creditor in the letter of claim or the debtor in the response to a letter of claim.
If either the creditor or debtor requests a document or information, the other party must within 14 days of receiving the request provide the document or information sought, or explain why the document or information sought is unavailable.
If you wish to engage me to assist with preparing a letter of demand for your business debt claim, please complete this Google form. (Google account log-in required for file upload.)
Alternatively, if you wish to engage a Singapore lawyer to assist with preparing a response to a letter of claim for business debt, including a counterclaim, you may contact me here.
“Business-to-business claim” means a claim by a business entity (being the creditor) against another business entity (being the debtor) for a contractual debt that falls within the following categories:
(a) a claim for payment for the sale of goods or the supply of services (except for construction and renovation services);
(b) a claim for payment for rental or for the hire-purchase of goods;
(c) a claim under a banking, overdraft, or other credit facility; and
(d) a claim under a guarantee.
“Business entity” includes —
(a) a sole proprietorship;
(b) a partnership;
(c) a company, including a foreign company;
(d) a limited partnership; and
(e) a limited liability partnership.
You may find the Protocol here.
A State Courts’ repayment calculator (taking into account monthly instalments, principal, interest) is found here.