Letter
of Demand

A Letter of Demand is a formal written notice sent by a creditor—whether an individual or a business—to a debtor, requesting payment for an outstanding debt. It plays a crucial role in the debt recovery process, often serving as the first formal step before taking legal action. The primary purpose of this letter is to notify the debtor of the amount owed, provide a deadline for repayment, and warn of possible legal consequences if the debt remains unpaid. It can often prompt payment or open the door to negotiation, helping to resolve the matter without going to court.

Though not a court document, a Letter of Demand carries legal significance. It serves as documented proof that the creditor has made a genuine attempt to recover the debt before initiating legal proceedings. In many jurisdictions, courts expect this step to be taken before accepting a debt-related claim. A letter that is professional, clear, and legally sound can strengthen a creditor’s position in any future legal action.

Letters of demand can be delivered via email, regular post (ideally with tracking or proof of delivery), or through a lawyer, which can add a sense of seriousness to the demand. You can choose to have the letter drafted or sent by a legal professional to increase the pressure on the debtor to act promptly.

Benefit of a Letter of Demand in Singapore

While a Letter of Demand is not a court document, it carries significant legal and psychological weight. It puts the debtor on formal notice and creates a record of your attempt to resolve the matter amicably. Courts often view the issuance of an LOD favorably if legal action eventually follows.

How can we help?

A Letter of Demand is a vital step that often leads to faster, less costly debt recovery. At Swift Debt Recovery, we will be able to help create and deliver the letter base on variety of situations, including unpaid invoices for goods or services, personal loans between individuals, commercial disputes, overdue rent in tenancy agreements, or any other financial arrangement where payment is overdue. It is particularly effective in cases where the debtor is avoiding informal contact or disputing the obligation to pay. If your case is complex or the amount is substantial, seeking legal advice with us before sending the letter is advisable. Good record-keeping—such as contracts, invoices, and communication history—will support your claim in case the matter escalates.