Singapore has no equivalent of the dishonoured-cheque criminal regime found in some jurisdictions. A bounced cheque here is a civil matter, and there is no statutory notice with a fixed window preceding a criminal complaint. What a letter of demand does is establish the claim clearly, start time running, and give the debtor a last opportunity before cost is incurred.
Letter of Demand
Recovering a debt or enforcing a contractual right
Singapore has no equivalent of the dishonoured-cheque criminal regime found in some jurisdictions. A bounced cheque here is a civil matter, and there is no statutory notice with a fixed window preceding a criminal complaint. What a letter of demand does is establish the claim clearly, start time running, and give the debtor a last opportunity before cost is incurred.
| Item | Detail |
|---|---|
| Creditor | [NAME], UEN [UEN] |
| Debtor | [NAME], [UEN / NRIC] [NUMBER] |
| Debtor type | [Company / Individual / Partnership] |
| Principal amount claimed | S$ [AMOUNT] |
| Interest claimed | S$ [AMOUNT] — [contractual at ______% / statutory] |
| Total demanded | S$ [AMOUNT] |
| Basis of the claim | [Unpaid invoices / Breach of contract / Loan / Dishonoured cheque] |
| Oldest invoice date | [DATE] |
| Limitation expires approximately | [DATE] — generally 6 years from the cause of action |
| Deadline given | [14] days from the date of the letter |
| Sent by | [Registered post / Email / Hand delivery] on [DATE] |
1. Before Sending
| # | Check | Why | Confirmed |
|---|---|---|---|
| 1 | Is the debt genuinely due and undisputed? | A demand for a disputed sum invites a counterclaim | [Y/N] |
| 2 | Are the underlying documents in order — contract, purchase order, invoices, delivery evidence? | This is the evidence if it goes further | [Y/N] |
| 3 | Have we performed our own obligations? | Non-performance is the usual defence | [Y/N] |
| 4 | Is the amount arithmetically correct, including credits and part payments? | A wrong figure undermines the whole letter | [Y/N] |
| 5 | Is there a contractual interest rate, or do we rely on statutory interest? | Determines what can be claimed | [Y/N] |
| 6 | Is the debtor solvent and worth pursuing? | A judgment against an empty company is worthless | [Y/N] |
| 7 | Is the correct legal entity named, with the right registered address? | Suing the wrong entity wastes time and cost | [Y/N] |
| 8 | Is the claim within the limitation period? | Generally six years from the cause of action | [Y/N] |
| 9 | Does the contract require mediation or arbitration first? | Ignoring a dispute clause can be costly | [Y/N] |
| 10 | Is the commercial relationship worth preserving? | Tone should follow the answer | [Y/N] |
| 11 | Which forum — Small Claims, Magistrates, District or High Court? | Depends on the amount and the nature of the claim | [Y/N] |
| 12 | Have we tried a call first? | Most overdue invoices are administrative, not refusals | [Y/N] |
2. Letter
[CREDITOR NAME] UEN: [UEN] [ADDRESS]
BY [REGISTERED POST AND EMAIL]
[DEBTOR NAME] [UEN]
[REGISTERED ADDRESS]
Attention: [NAME], [DESIGNATION]
Dear Sirs,
5 more pages in the Word file
This is page 1 of the Word document, exactly as it appears when you open it. Fields shown like THIS are placeholders for you to complete.
These notes accompany the template and explain the drafting choices, the compliance points and the mistakes most often made with this document. They appear as a final page in the Word file, intended to be deleted before the document is executed.
Businesses arriving from jurisdictions where a bounced cheque triggers a statutory notice and a criminal complaint frequently expect the same in Singapore. It does not exist. A dishonoured cheque is evidence of an unpaid debt and is pursued as a civil claim like any other. Template letters referring to a statutory notice period for cheque dishonour are imported and wrong.
A large proportion of overdue invoices are administrative — the invoice went to the wrong address, the approver was on leave, a purchase order reference is missing. A phone call resolves those in minutes and costs nothing in goodwill. Reserve the letter for genuine non-payment.
Naming the trading name rather than the registered entity, or using an old address, wastes time and can invalidate service later. Take the details from the current business profile, not from the invoice header.
Credits, part payments and disputed line items must all be reflected. A demand for a figure the debtor can show is wrong hands them the initiative and undermines everything else in the letter.
A letter threatening immediate proceedings, followed by three months of silence, teaches the debtor that the threat is empty — and every subsequent letter is discounted. Only state what you are prepared to do.
Paragraph 6 invites either a substantive dispute or a payment proposal. Most commercial debts are settled rather than litigated, and a letter that closes off discussion makes settlement harder while making litigation no more likely to succeed.
A written acknowledgement, or a part payment, generally restarts the limitation period. Where a payment plan is agreed, documenting it with an acknowledgement is valuable for exactly that reason — as well as making the debt easier to prove.
Contractual claims are generally subject to a six-year limitation period from the cause of action. Debts that sit on a ledger for years quietly become unenforceable. Diarise the date at the outset, as step 8 requires.
Where the contract requires mediation or arbitration, commencing court proceedings in breach of it can result in a stay and an adverse costs order. Read the clause before choosing the route.
Threatening winding up to pressure payment of a debt that is genuinely disputed on substantial grounds is an abuse of process. The application can be struck out with costs, and the creditor may face a claim. Where the debt is truly undisputed and the debtor simply will not pay, it is a powerful remedy — but take advice before deploying it.
A judgment against a company with no assets is an expensive piece of paper. Check the debtor’s filed accounts, whether there are registered charges over its assets, and whether other creditors are already enforcing, before committing to proceedings.
Small claims, magistrates’ and district courts each have jurisdictional limits, and the small claims route is limited to certain categories of claim. Confirm the current thresholds and eligibility before filing — they change, and filing in the wrong forum wastes the fee and the time.
Where GST has been accounted for on a supply that is never paid for, relief may be available on write-off subject to conditions. It is routinely forgotten, and it is real money.
A debt that reached a letter of demand usually reflects a credit control gap — no credit check, terms never agreed, invoices sent late, no follow-up until ninety days. Step 10 asks the question that prevents the next one.
Reflects Singapore law current as of {{DATE OF USE}}. Court jurisdictional limits, Small Claims Tribunal eligibility and limits, statutory demand and bankruptcy thresholds, limitation periods and GST bad debt relief conditions all change — confirm the current position and take legal advice before commencing proceedings or issuing a statutory demand.
This is a ready-to-use template provided for convenience. Laws and requirements change, and every situation is different — please have it reviewed by a qualified professional (a lawyer, corporate secretary, or accountant as relevant) before you rely on it.