How Freelancers Can Use Letters of Demand to Get Paid
Getting paid on time can be one of the toughest parts of freelancing. Many freelancers in Singapore face delayed or missing payments despite completing their work professionally. Repeated reminders and polite follow-ups sometimes lead nowhere, leaving you unsure of how to recover what you’re owed without damaging your reputation or spending thousands on legal fees.
This is where a Letter of Demand (LOD) can make all the difference. A properly written LOD is a clear, formal request for payment, and often the first serious step before legal action. It signals to your client that you are ready to enforce your rights, but it also gives them a final opportunity to resolve the issue amicably.
This guide explains how Singapore freelancers can use a Letter of Demand effectively, what legal weight it carries, and how Demand helps you generate one that’s affordable, fast, and legally compliant.
What Is a Letter of Demand (LOD)?
A Letter of Demand is a formal written notice sent by a creditor (in this case, you/the freelancer) to a debtor (your client) demanding payment of an outstanding amount. It outlines:
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The details of the debt (such as the project, invoice number, and amount owed)
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The due date or payment timeline originally agreed upon
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A clear deadline by which payment must be made
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The consequence of non-payment, such as referring the matter to a law firm or filing a claim in court
The LOD doesn’t just remind the client to pay; it creates a record of your attempt to recover the debt. If the matter ever escalates to court, this letter becomes supporting evidence that you acted reasonably before taking legal steps.
When Freelancers Should Consider Sending a LOD
Freelancers should consider sending a Letter of Demand when:
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Payment is overdue: typically two to four weeks past the agreed due date.
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Reminders have failed: you’ve sent emails, messages, or invoices but received no response.
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Partial payment or disputes arise: the client acknowledges the work but delays paying the full amount.
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You need to show seriousness: the client may be ignoring casual follow-ups but will respond once communication becomes formal and time-bound.
In Singapore, freelancers often hesitate to issue a demand letter out of fear of “burning bridges.” However, a professionally written LOD is not hostile, it’s simply a legal and procedural way to assert your right to be paid for completed work.
Legal Standing of a Letter of Demand in Singapore
A Letter of Demand is not a lawsuit by itself, but it carries legal weight. It serves as:
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Evidence of good faith: You’ve made reasonable attempts to recover the debt before resorting to court.
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A formal warning: It signals that you are aware of your legal rights and are prepared to enforce them.
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A negotiation trigger: Many clients settle once they receive an official demand, especially when they realise you could escalate the matter.
Under Singapore law, freelancers and small businesses have the same right as any other creditor to issue a Letter of Demand. While it does not guarantee payment, it is an essential first step in any debt recovery process, recognised by the Small Claims Tribunals and the State Courts.
Read: Letter of Demand in Singapore: A Complete Guide for Everyone
How to Send a LOD Professionally
The effectiveness of a Letter of Demand depends on tone, clarity, and compliance. Here’s how to send one professionally:
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Be factual, not emotional – Avoid accusatory language. Stick to what was agreed, what has been delivered, and what remains unpaid.
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State clear details – Include invoice number, amount owed, project title, and the date payment was due.
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Give a deadline – Most LODs specify a payment deadline of 7 to 14 days.
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Outline consequences – Indicate that you may refer the matter to a law firm or file a claim if payment is not received.
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Send through verifiable channels – Email is common, but if the amount is significant, send a hard copy via registered mail to ensure proof of delivery.
If you are unfamiliar with legal language, avoid drafting it yourself. Poorly worded letters may be ignored or misinterpreted. With Demand’s automated Letter of Demand service, freelancers can easily generate a legally credible, professional letter of demand in Singapore in just minutes without needing legal expertise.
What Happens After Sending a LOD
Once the client receives your Letter of Demand, a few scenarios may unfold:
1. The Client Pays
The best-case outcome? Your client settles the outstanding invoice promptly after receiving the LOD. The formal tone and legal implications often motivate immediate payment.
2. The Client Responds to Negotiate
Sometimes, clients reach out to discuss payment terms or offer a partial settlement. In these cases, keep the communication professional, document everything in writing, and only agree to new terms you’re comfortable with.
3. The Client Ignores or Refuses to Pay
If there’s no response within the stated deadline, it’s time to escalate. You’ve fulfilled your obligation to communicate clearly, so further steps may involve legal assistance.
Read: Can You Ignore a Letter of Demand? Legal Consequences in Singapore
Next Legal Steps If the Client Still Doesn’t Pay
If your LOD is ignored, you can escalate the matter with the help of a law firm partner. For Singapore freelancers, the next options typically include:
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Engaging a law firm: Demand partners with licensed law firms in Singapore, such as Netto & Magin LLC, to handle escalated debt recovery cases professionally. They can send a lawyer-issued LOD or begin legal proceedings if needed.
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Filing a claim at the Small Claims Tribunals (SCT): For amounts up to S$20,000 (or S$30,000 if both parties agree in writing), you can file a claim at the SCT without hiring a lawyer. The LOD you issued becomes useful supporting evidence.
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Court action for higher amounts: For debts above the SCT limit, your partner law firm can advise whether to proceed through the Magistrate’s Court or District Court.
Many clients choose to pay once a law firm steps in, as the prospect of legal costs or a judgment against them is a strong motivator.
Why a Letter of Demand Is Worth Sending
For freelancers, sending a Letter of Demand does more than chase an unpaid invoice, it protects your work, reputation, and income. It’s also a signal to future clients that you handle your business professionally.
A well-crafted LOD:
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Reinforces your right to be paid for completed work
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Shows you understand the legal process
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Helps you recover debts faster and more affordably
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Strengthens your case if the matter proceeds to court
By sending it through a trusted platform like Demand, you ensure that your letter follows Singapore’s legal standards, is written in the correct format, and can be delivered instantly.
Conclusion
Unpaid invoices shouldn’t derail your freelance income. Whether it’s a one-time client who went silent or a recurring partner delaying payment, a Letter of Demand gives you a structured, credible way to claim what’s rightfully yours. It’s a vital step in Singapore’s debt recovery process, one that shows you mean business without immediately resorting to costly litigation.
If you’re struggling to get paid for your freelance work, take control of the situation today. Generate a legally compliant, affordable letter of demand in Singapore with Demand, and protect your income with just a few clicks today!
