Once firms extend credit amounts, they should be prepared for any unpleasant situation that might jeopardize their smoothly running business. Debt issuance is not risky for businesses, but Debt Collection Dubai is one of the most arduous tasks for creditors. Hence, preparedness, planning, alertness, and constant monitoring of the debt accounts and debtor profile are necessary for an effective debt collection policy.
The Response should Be:
Moreover, it is necessary to have an assertive approach regarding debt collection in dubai. It is far better and more productive than adopting a hostile approach regarding recovery in case the firm finds the debtor unable to honour some or all his debt obligations. According to this approach, the firm needs to design a prompt response to the first episode of delay in payment. This response should comprise a range of collection calls that escalate in severity and urgency depending upon the debtor’s attitude towards debt payment.
Hire Professional Help:
However, if these attempts made by the credit issuer to persuade the client go all in vain, it is time to hire professional help. The agency initiates the recovery process on behalf of the creditor. Besides this, the firm originally issuing the debt can withhold the account in the name of the debtor and issue an order to cease any further transactional activity with him.
Calls for the Communication System:
Moreover, being assertive calls for a persuasive communication system between the creditor and debtor. It begins with regular reminders through phone calls, emails, and faxes that demand the debtor to remember the deadline and stay vigilant regarding timely payments. The reminder methodology then takes a step further and takes the form of an in-person interactive session regarding the clearance of dues.
Reasons:
However, if the debtor has genuine reasons for non-payment or delays in payment, then both the creditor and debtor need to talk it through. The debt-receiver should work out a way of clearing the outstanding bills that is suitable for both the parties and their future business relationship.
However, this calls for a strong willingness for arbitration from both the parties i.e the one who owes the money and the one to whom the money is owed to. If either party fails to reach a consensus or the creditor rejects the debtor’s legitimate reason for non-payment, then begins a battle that nobody can win.
Time can be provided to “Debtors” if they want to pay and they need time. Few things really need to be accepted as the age of the company, past business transactions, past market goodwill etc. There is no need to put the special pressure, there is no need to chase them if the money can be recovered, and there is no need to go to court if the matter can be resolved amicably.