The process of debt recovery is unique to each situation, but the client will always advise on the course of action depending on the loan status.

Some loans may require hard collection where you take legal action while others may require soft collection where you use Singapore debt collection service other than going to the court.
The hard collection is applied at advanced stages of loan default. This is to mean the borrower has skipped several months without paying the loan.

On the other hand soft collection is applied to freshly defaulted loans. This is where the loan has been late for a few months.
In such instances, you engage Singapore debt collection services to do the recovery for you at an agreed percentage of the recovered amount.
Below are the Steps Followed in the Debt Recovery Process

Initial Consultation
The first step is to understand the client’s current situation. Get to know the amount of loan in default, the outstanding loan, and the classification of the loan. Get to know how many days is the loan in default. For instance, you can find the loan is 30 days, 60 days, 90 days, or 180 days. Also, get to understand if the loan is secured or unsecured and what were the loan terms. Also, understand if the loan had guarantors or not.

Due Diligence
The next step taken by Singapore debt collection services is to perform due diligence. This helps in understanding the debtor’s financial situation. By understanding the financial status of the debtor, you’ll be in a position to take the right course of action. For instance, you may find that the debtor can only settle a given percentage of the loan and in such a case you can advise the creditor on rescheduling the loan to an installment affordable to the borrower. In another instance, you may find the borrower is expecting some money and in such a case they can give a commitment. In other instances, you may find the borrower is bankrupt, and in such a case you advise for legal action.

Issue of Demand Letter
After understanding the financial status of the borrower, you then issue a demand letter. This is a letter sent to the debtor to demand payment. The letter warns the debtor of potential legal action and gives them a warning of an impending court case. A demand letter is a notice given for the borrower to have cleared the amount within the stated time, failure to which further action will be taken.

Await Response & Negotiate
Within the notice period, the debtor should respond to the letter, explaining the current financial status and the plan to settle the outstanding loan amount.
In response to the letter, they can re-negotiate the terms to more affordable installments

Filing Court Papers
This is usually the last resort when all the recovery efforts turn futile. The debt collector files a suit against the debtor leaves it in the hands of the court to pursue the payment.

Enforcement of Court Decision
The last step is the enforcement of the court decision. At this point, the debtor has no other option but to clear the amount due and the fee incurred on the court case.