Debt collection singapore
Case Study #028: $100,000 Capital Investment
The client and the debtor were former business partners who had shared success in their initial ventures. Buoyed by their achievements, the debtor proposed a new project that required significant capital investment. The client, trusting the debtor’s vision, provided SGD $120,000 to cover initial costs.
They agreed on a verbal arrangement: the debtor would repay the client in full once the project began generating revenue. Unfortunately, the venture ran into trouble early on. Poor market research and logistical challenges caused the project to stall. Despite the setbacks, the debtor reassured the client that repayment was still a priority.
Months turned into years, and the promised repayment never materialized. The client tried to maintain cordial relations but grew increasingly frustrated as the debtor seemed to prioritize other financial commitments. Feeling cornered and without legal documentation to back his claim, the client sought the expertise of JMS Rogers.
JMS Rogers conducted a thorough investigation into the debtor’s financial status. It became evident that while the business had failed, the debtor’s personal assets were substantial enough to fulfill the repayment obligation. Armed with this information, JMS Rogers initiated contact with the debtor, emphasizing the legal and reputational risks of non-payment.
Initially defensive, the debtor claimed that the loan was a shared risk and should be considered a loss. However, JMS Rogers presented evidence of the client’s sole financial contribution and the debtor’s personal expenditures, demonstrating the debtor’s ability to repay. Under pressure, the debtor agreed to a settlement.
Within three months, the debtor paid 50% of the amount upfront, with the remainder distributed over the next year. The client regained his financial footing, though the professional relationship between him and the debtor ended permanently.
What can we learn from this?
Define Roles and Responsibilities Clearly: Business partnerships should always be documented with clear agreements, including loan terms.
Early Intervention Is Key: Prolonging debt recovery efforts can complicate matters. Seek professional help early to safeguard your interests.
Trust, but Verify: While trust is essential in business relationships, it should always be complemented by due diligence. Evaluate the feasibility of projects, conduct market research, and verify the financial stability of partners before committing significant investments.
Read more : https://www.jmsrogers.com/
Case Study #028: $100,000 Capital Investment
The client and the debtor were former business partners who had shared success in their initial ventures. Buoyed by their achievements, the debtor proposed a new project that required significant capital investment. The client, trusting the debtor’s vision, provided SGD $120,000 to cover initial costs.
They agreed on a verbal arrangement: the debtor would repay the client in full once the project began generating revenue. Unfortunately, the venture ran into trouble early on. Poor market research and logistical challenges caused the project to stall. Despite the setbacks, the debtor reassured the client that repayment was still a priority.
Months turned into years, and the promised repayment never materialized. The client tried to maintain cordial relations but grew increasingly frustrated as the debtor seemed to prioritize other financial commitments. Feeling cornered and without legal documentation to back his claim, the client sought the expertise of JMS Rogers.
JMS Rogers conducted a thorough investigation into the debtor’s financial status. It became evident that while the business had failed, the debtor’s personal assets were substantial enough to fulfill the repayment obligation. Armed with this information, JMS Rogers initiated contact with the debtor, emphasizing the legal and reputational risks of non-payment.
Initially defensive, the debtor claimed that the loan was a shared risk and should be considered a loss. However, JMS Rogers presented evidence of the client’s sole financial contribution and the debtor’s personal expenditures, demonstrating the debtor’s ability to repay. Under pressure, the debtor agreed to a settlement.
Within three months, the debtor paid 50% of the amount upfront, with the remainder distributed over the next year. The client regained his financial footing, though the professional relationship between him and the debtor ended permanently.
What can we learn from this?
Define Roles and Responsibilities Clearly: Business partnerships should always be documented with clear agreements, including loan terms.
Early Intervention Is Key: Prolonging debt recovery efforts can complicate matters. Seek professional help early to safeguard your interests.
Trust, but Verify: While trust is essential in business relationships, it should always be complemented by due diligence. Evaluate the feasibility of projects, conduct market research, and verify the financial stability of partners before committing significant investments.
Read more : https://www.jmsrogers.com/
Debt collection singapore
Case Study #028: $100,000 Capital Investment
The client and the debtor were former business partners who had shared success in their initial ventures. Buoyed by their achievements, the debtor proposed a new project that required significant capital investment. The client, trusting the debtor’s vision, provided SGD $120,000 to cover initial costs.
They agreed on a verbal arrangement: the debtor would repay the client in full once the project began generating revenue. Unfortunately, the venture ran into trouble early on. Poor market research and logistical challenges caused the project to stall. Despite the setbacks, the debtor reassured the client that repayment was still a priority.
Months turned into years, and the promised repayment never materialized. The client tried to maintain cordial relations but grew increasingly frustrated as the debtor seemed to prioritize other financial commitments. Feeling cornered and without legal documentation to back his claim, the client sought the expertise of JMS Rogers.
JMS Rogers conducted a thorough investigation into the debtor’s financial status. It became evident that while the business had failed, the debtor’s personal assets were substantial enough to fulfill the repayment obligation. Armed with this information, JMS Rogers initiated contact with the debtor, emphasizing the legal and reputational risks of non-payment.
Initially defensive, the debtor claimed that the loan was a shared risk and should be considered a loss. However, JMS Rogers presented evidence of the client’s sole financial contribution and the debtor’s personal expenditures, demonstrating the debtor’s ability to repay. Under pressure, the debtor agreed to a settlement.
Within three months, the debtor paid 50% of the amount upfront, with the remainder distributed over the next year. The client regained his financial footing, though the professional relationship between him and the debtor ended permanently.
What can we learn from this?
Define Roles and Responsibilities Clearly: Business partnerships should always be documented with clear agreements, including loan terms.
Early Intervention Is Key: Prolonging debt recovery efforts can complicate matters. Seek professional help early to safeguard your interests.
Trust, but Verify: While trust is essential in business relationships, it should always be complemented by due diligence. Evaluate the feasibility of projects, conduct market research, and verify the financial stability of partners before committing significant investments.
Read more : https://www.jmsrogers.com/
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