Easy Debt Collection in the UAE
Despite the UAE commercial laws, Debt Recovery Dubai firms are working for businesses that are facing debt collection issues. In simple words, debt is a financial amount that is not paid by the debtor to the creditor in the exchange for goods and services.
It could be in the form of a bounced cheque, too. There are ways to recover debt, but not every person can do it; therefore, only debt collectors are hired by the companies.
Before starting with debt collection, you need to know about the debtor’s reputation in the market. A credible debtor will not ignore any kind of debt. You must verify all the relevant information about the debtor through your past business interactions.
However, if there is any problem that has delayed the payment, both the creditor and debtor should sit together to find an amicable solution to this kind of insolvency with the help of a debt collector.
It is important to have proper documentation because that is the evidence showing the amount of debt owed and what terms and conditions were mentioned in the contract. Often, debt collection services fail because of poor documentation.
Therefore, always ask for a copy of all the relevant documents from the creditor. There is a common practice in the UAE that a security cheque is submitted in the process of lending any services. The cheque is issued by the debtor and shows a high level of commitment and assurance to the creditor.
Usually, debt can be collected at the maturity of the cheque, but if it is bounced then, there will be open communication between the debtor and creditor through the Debt Recovery Dubai agency to resolve the issue in a friendly manner. A debt collection situation can be handled amicably if the debtor cooperates with the debt collector and the creditor.
To make it hassle-free, the security cheque should work, rather than bounce. However, when a debt collector is invited into the process of debt collection, then things become legal and serious.
The matter might escalate to court if the debtor does not cooperate. Once the court is involved, then there is no amicable solution to debt collection.
