19/10/2020 by MNV Associates
Debt Collection Strategies
Best methods for debt collection for companies in Dubai
One of the most difficult components of the business practices of any lender is debt collection. No matter how thorough you are in determining the prospective debtor 's credibility, if they do not have the capacity or desire to do so, it will be hard to collect money from them
Techniques for Debt Collection Assistance
You want to assume that your debt collection methods are reliable, successful and, most importantly, legal in order to regain the money you loaned. Here are some of the best methods that will help you recover debtors' money:
- Protect all necessary records
The debt collection tactic as a creditor must begin at the very first stage, which is the application of the debtor. You would want to make sure you are lending to an individual capable of making repayments. To guarantee that they repay their loan, including receiving security or collateral, you really should consider taking action.
Throughout this method, made a point to organize, as well as any loan-Related correspondence, all documents sent to you by the debtor. This requires signed contracts and some form of debt identification. You can also hold a tracker of their repayments along with attached invoice.
- Research on the New Insolvency law
To be in this organization means that you are completely aware of the risk that debtors are seeking to postpone repayments or are unable to meet their obligations. This is a justification for lawful acts to be sought. However, you would like to make sure you are aware of the laws that are significant.
The United Arab Emirates recently passed an insolvency rule, which can help clear bad debts for Emiratis and citizens. Legal obligations for their failure to pay were also withdrawn. This implies that debtors are safe from prosecution by statute. As you can not take your debtor to court, what you can do is employ a legal firm to provide you with guidance about how to recover debt. This way, you can consider that you are taking actions which is within the law's limits.
- Converse with The Debtor strongly
You will negotiate firmly with your debtor by enforcing due dates as well as tweaking the terms and conditions with a legal professional to advise you. Maybe you'd like to consider giving a settlement package as well. You can log any contact that may take place, just as with the first tactic. These may serve as evidence that could play a key role when you discuss with the court-appointed liaison of the creditor.
- Look at Dubai 's company recovery services
You may want to deal with business recovery services in Dubai if you consider it challenging to retrieve your funds from the debtor. From communications to collections, these companies will take over any collection-related activities. Because they will do all the negotiations, this may be a more effective move for you.
Recruiting an agency sends a strong message that you're serious about debt recovery. Plus, the firm has no previous association with the debtor, which provides the creditor with a kind of clean slate.
This can take both time and money to retrieve unpaid debts. You can continue to collect debt with an efficient approach by recruiting business recovery services in Dubai, while having a dedicated company to do the collections for you.