Unpaid Invoices
Invoices are sent to customers, and they have to pay as per the agreed time. If these invoices are not paid at right time, then become unpaid invoices. The reasons not to pay these invoices can be two types. The reason is that company does not have the funds yet and they will clear the invoices later. The reason second is that company does not pay always or does not pay easily. Such things have to be managed very wisely. If the creditor is unable to manage on her behalf then he has to go to take help of experts known as Debt Collection Agencies or some Law Firms with Debt Recovery Services.
The Debt Collection Services
The Debt Collection services offered by the debt collection agencies are not a joke. Such companies are legal entities, have professional staff members, a quick team, and an established platform. Debt Collection is a serious and proper process performed by experts who can also be having a legal background. Therefore several law firms have opened a new and separate debt recovery department. These Law Firms obviously do work with a team of Lawyers and Legal Consultants. Therefore it becomes easier to put pressure on the debtors.
Unpaid Invoices can be a reason to send legal notices or file a civil case. When the debt collection process does not prove successful then the last process is Civil Court Cases.
- The court entertains the facility that, the amicable way was adopted in the beginning.
Compensation with Court Case
When the plaintiff steps inside the court then, he has a right to ask for the legal expense. He is also awarded the legal interest by the court. This is 5% all over the UAE now. Previously it was a 9% legal interest. The court Fee is also paid back. Advocate professional fee is up to court. Sometimes it is fully paid and sometimes partially paid. The advantage that comes here is that unpaid invoices matter can be easily managed by, Law Firm after the debt collection efforts.