No Business can operate without taking Loans, giving credits, taking Credits or debt management in the market. You have to deal with the Credit Factor. Let’s assume you do not take and financial aid from the bank, let’s assume you do not buy goods on credit, let’s assume your credit history is very good but still you have to sell your goods or services on credit. It is not sure that every time you will be paid by your vendors/debtors at the right time. It is not sure you will pay back to your creditors at the right time as well. Usually, the debtor purchases goods and services on half an instalment and will take time to give the rest of the instalment. If these debtors, who don’t care about the creditor company after buying goods from them, then need to be treated on a serious basis, therefore Collection or Recovery agencies are hired. A Debt Collection Agency or Law Firms having Recovery Department is a really supportive tool for the business.
There are many debt collection agencies in Dubai and throughout UAE, who are meant to resolve the debt issue. They also help to resolve the debt crisis with the banks. Though few of them fulfil the definition of a true recovery company. It’s a little advantage that when you hire a Law Firm for Collection Services then chances of non-professionalism get reduced. Dubai has become one of the most admired and liked places for business activities, therefore the people need more recovery services here as well, as compare to other parts of the world.
The burden of debt always comes to the debtor. No one should think that he can get an escape, even if it is a little amount. Trade Debts, Loans, Unpaid Profits, Unpaid Salaries, Unpaid End of Service Benefits etc, each and everything needs to be paid. If it is not paid outside the Court, the Court is waiting for the Debtor, where he has to pay penalties, fines, compensation, legal awards along with the court directed amount. Debt collection Agency assists a lot by negotiating with the debtors/vendors. Debt Collectors always know the recovery ways and strategies, to deal with the debtors who are reluctant to pay the amount.
Pros and Cons – Recovery Services. It has been proved that 9 out of 10, are Pros. Only One Con is the relationship. It means the relationship will be spoiled or might be spoiled. Always make sure that when the situation has reached to its peak then you should hire the Recovery Service Providers or the Law Firm. There are also some agencies, the major one of which you simply are compelled to pay them. So, you should know whether your business can afford to have a debt collection agency in Dubai or not.
There are debt collection companies who work for small businesses only, and so they become the company’s legal guide, whereas the big companies have more professional debt collection agencies because their issues are a bit complexed. It is preferred by the Experts to hire the Law Firm for Collection Services, though Recovery or Collection Agencies are also hooked up with Law Firms, nowadays.
Debt collection in UAE is a quite severe issue faced by businessmen or even by the commons. Large businesses can usually afford such problems because they generally have a lot of revenue and can give debtors some more time. When required they can acquire the services by hiring Debt Collectors, Law Firms. The advantage is the Team where Lawyers and the Debt Collectors form a great combination.
They can acquire the Collection Services, or they can file the Criminal or Civil Cases. While, small businesses get affected a lot as they don’t have much revenue and as a result, to acquire the services. The quality debt collection services are also not easy to acquire as they might ask for the processing fee, which can not be possible for a small business in the beginning. People also having a mindset that they prefer to work on a percentage basis. Well, quality things are always a little expensive. There is no doubt about it. But quality things or services produce the results as well.