Debt Collection is an organized and systematic process. This procedure of debt recovery dubai is accomplished through different types of collection agencies. First-party collection agencies, bad debt purchasers, and third-party collection Agencies are the main categories of Debt Recovering Agencies.
First-party collection agencies are also known as in-house debt collection agencies cum department where hired staff is used by the company owners to recover the debts. They are departments set up within the lending company that primarily deals with getting back the owed money from the debtors. Hence, there is direct dealing and correspondence between the debt issuing company and the debt receivers. It is an in-house department that can also be handled by the In-house Legal Department. Lawyers and Debt Collectors are hired together. In Dubai, we will call such professionals as Dubai Lawyers and Dubai Debt Collectors. These Dubai Lawyers can’t be Emirati Lawyers probably, these can be other nationals.
Those who opt for in-house debt recovery dubai do so due to the various benefits associated with it. Firstly, the setup of a within the company bad debt recovery department keeps a vigilant and constant check on the debt collection status. Hence, the lending company can make a timely move to prevent any financial crisis by acting efficiently and promptly against any defaulting client. Such arrangements are done by big business groups where they need permanent staff doe debt recovery process, which is an attempt outside the court on serious grounds. However, the advantage comes with a price. The downside of such a collection strategy is the high cost incurred in its setting up. Such an internal company arrangement requires a large investment to set up the basic infrastructure and continue maintaining it. Thus, the cost concerns make the creditors go for less expensive professional collection agencies.
Third-party collection agencies are the answer to this cost-effective collection mechanism. Such an agency has no direct link with the crediting company. Their work domain is different and has no association with either the debtor or collector. This comes out to be advantageous in this scenario since this type of agency works more aggressively and fruitfully than the first-party collection agency to recover bad debt. First-party collecting agencies have to consider many factors before adopting any strategy to pursue the debt defaulters. They have to uphold the company’s reputation as well as keep the clients for future investment purposes. It makes it quite difficult for them to get a swift success story in debt collection. On the other hand, the third-party collection agencies have no such concerns about the company stakes. Their prime focus is to get the owed amount back for their clients by any means.
Though the third party also plays a role where relationships can be spoiled or affected but the ultimate burden is not on the creditor. When he operates through the first party, means its own resources then there is a chance that the ultimate burden will be up to him. We must keep in mind, that company should try to save the relationship as much as they could. They never know it can be proved beneficial in the future.