Dubai Lawyers

dubai lawyer logo 1

Unusual procedure about Debt Collection in Dubai

As for as procedure about debt collection is concerned, it differs in every country. For example, the debt recovery Dubai are not based in UAE, because they are not permitted to have debt collectors in the country. They operate in the international market. The debt collectors are the agencies which work for of the creditor, whose job is to recover the creditor’s unpaid invoice from the debtor with different techniques.

Necessary initiatives

Generally, the creditor takes the first initiative of contacting with the debtor about their financial dues, but if the debtor does not answer to the creditor and debtor have crossed his time line for the retrieval of debt, than the creditor without thinking for another minute, the creditor must ask help from the debt collection agency.

Best thing about the debt collectors is that they will not charge unless they have not recovered your debt. Just in case if they failed to do so, they don’t get anything from the creditor. It seems a fair enough deal with the creditor because he is not losing his money anymore. It is actually a Win-Win situation for the creditors.

Diversified circumstances

There are various circumstances in which the creditor company works with the debt collection agency. The debt collectors will make a phone call to the debtor on the behalf of creditor or even arrange a personal meeting to talk in person about the debt settlement in Dubai.

Most of the times debtors appear to be stubborn and they don’t pay the full amount, by making arguments and excuses on it. However, the creditor company makes necessary negotiations to the least amount because they believe that at least something is better than nothing. Just in case, they gain the least amount, which would be quite better than letting go off the debtor comfortably.

Why cash flow got disturbed?

Main reason behind affected or disturbed cash flow is the large debts in the company. The creditor company’s financial account is totally going in deficit due to pending or unpaid invoices. There could be two reasons for that, either the debtor is not serious about the returning debt or invoices, or the finance manager of the creditor company failed to maintain the proper record of financial status of the organization.

Scroll to Top
Scan the code