If you're looking to collect a debt, there's no need to go it alone. In fact, working with a debt collection agency can be the key to a successful outcome.
Here at Intercol, we're experts in international debt recovery services. We've been helping businesses of all sizes since 25 years, and our success rates are among the highest in the industry.
So what can you expect when working with us? Below is an overview of our process, as well as some of the benefits you can expect to enjoy.
What Is a Debt Collection Agency and How Does It Benefit Your Business in the UAE?
A debt collection agency is a company that helps businesses to collect outstanding payments from customers. In doing so, they help to improve cash flow and protect the business's bottom line.
The benefits of using a debt collection agency in UAE are:
- They have extensive local knowledge and understanding of the debt collection laws in UAE.
- They have a large network of debtors and can track them down quickly.
- They have a proven track record of successful collections and can provide references.
- They are experts in negotiations and can get creditors paid quickly and fairly.
- They handle all the paperwork and follow up with customers, relieving you of the burden.
- They operate on a no-win, no-fee basis, so there is no risk to you.
- They are confidential and discreet, so your customers will not know they are being pursued by a debt collector.
The Amicable Debt Collection Procedure: How It Works
In the UAE, the debt collection process is amicable and takes place through a legal procedure. There are a number of steps involved in order to ensure that the debt is collected in a lawful manner. In order to collect a debt, you will need to follow the steps below:
- First, you need to send a letter of demand to the debtor, notifying them of the outstanding debt and requesting payment. This letter should be drafted by a lawyer and should include information such as the amount of money owed, when it was incurred, and a copy of the invoice or contract.
- If the debtor does not respond to the initial letter of demand, you can then file a case with the Dubai Courts. The court will appoint a judge who will oversee the case and make a ruling on the debt.
- If the debtor still does not pay, you can take enforcement action to recover the debt. This could involve seizing assets, freezing bank accounts, or issuing a travel ban.
The UAE debt collection process is effective and helps companies recover money that is owed to them. By following these steps, you can ensure that the debt is collected in a lawful manner.
The Process of Collecting a Business Debt in the UAE
There are a number of procedures that need to be followed when collecting a business debt in the UAE. The first step is to gather all the relevant documentation, including the contract between the debtor and creditor, invoices, correspondence, and any other evidence that supports the debt claim.
Once this is done, you can begin the debt collection process by sending a demand letter to the debtor. If they do not respond or pay, you can then take legal action. The UAE court system is relatively quick and efficient in handling commercial debt cases, and you can usually expect a judgement within a few months.
If you are successful in obtaining a judgement, you can then enforce it by seizing assets or garnishing wages. However, it is important to note that debt collection in the UAE can be a costly and time-consuming process, so it is always advisable to seek professional help from an experienced debt collection agency.
The Court System in the UAE for Commercial Debt Cases
When it comes to collecting a business debt in the UAE, you may need to resort to the local court system. The courts in the UAE can be complicated and can vary depending on the emirate so it’s important that you are well informed and knowledgeable about the process before embarking on legal proceedings.
The court system in the UAE is based upon Sharia Law and is split into three levels; civil, criminal, and administrative. If you are looking to collect a business debt, then you would be pursuing this claim through a civil court.
The process of filing a case with a court in Dubai or other emirates begins with submitting all your documents to their Ministry of Justice. If they accept your case, the Ministry will then refer you to filing documents at Dubai Courts which will then assign an officer who will coordinate between your company and defendant if he/she does not appear for hearings who will form part of the amicable settlement negotiation before going for litigation.
If litigation is unavoidable after all settlement attempts fail then there are special committee vested with powers u/s. 68 A (g) of Executive Regulations which formulate/arrange settlement offers on behalf of both parties by considering probability of success or defendant’s capacity to pay etc…before sending for full trial proceedings for judgement by specialised commercial courts throughout UAE at Dubai Judiciary Department or Abu Dhabi Judicial Department as well as other courts in other Emirates based upon merits & jurisdiction clauses mentioned on contract documentations or applicable laws & regulations in place.
Benefits of Using a Local UAE Debt Collection Agency
Using a local UAE Debt Collection Agency is beneficial for anyone looking to recover their debts, as it ensures that you have access to the latest information about local debt collection regulations and laws. Having a professional team working for you is also a great asset in case of any legal proceedings or if you would like to negotiate settlement terms. Working with a collection agency can save time and money while increasing the chances of recovering the money owed.
Moreover, seeking help from a local debt collection agency allows you to skip unnecessary steps in the process of collecting debts, as they are well-versed in the legal system and know exactly what needs to be done. They understand that each case requires a different approach, meaning they can tailor their services according to individual client needs. In addition, local debt collection agencies are familiar with the language and culture of the UAE, so they can bridge any cultural gaps between clients and debtors without any issues.
Another benefit to using a local UAE Debt Collection Agency is that the process is usually much faster than if you were to try and collect the debt yourself. Working with experienced debt collection professionals who are up to date with the laws and regulations can often help speed up the debt collection process. They will also ensure that the process is carried out in a systematic and fair manner, which will increase the likelihood of recovering the debt and minimising the need for any legal action.
Overall, the services of debt collection agencies are a great asset when it comes to efficiently recovering debts. With their local presence in the UAE, they can offer a wide range of services that will benefit both the debtor and the creditor. From dealing with negotiation and settlements to taking legal action, they provide a holistic approach to debt collection and their dedicated team of professionals will help ensure you have the best chance of receiving the money owed in a timely manner.
Ten Economical Facts about UAE
- The United Arab Emirates had a Gross Domestic Product of 454.7 US billion dollars in 2020.
- The UAE is one of the top five exporters of oil in the world.
- The UAE is a tax-free haven, with no income tax or corporate tax.
- The UAE has the fifth-largest reserves of natural gas in the world.
- The UAE has the most competitive economy in the Middle East, according to the World Economic Forum.
- The UAE is the largest trading hub in the Middle East, with trade accounting for over 70% of the country’s GDP.
- The UAE ranks first in the Arab world in terms of foreign direct investment.
- Dubai is the prime destination for foreign investment in the Middle East, accounting for more than 50% of the total.
- The UAE has become a major tourist destination, with more than 14 million visitors in 2019.
- The UAE has the world’s highest mobile phone and internet penetration rate, with more than 96% of the population having access to the internet.
If you are looking for an effective debt collection agency in Dubai, look no further than Intercol. We have more than 25 years of experience in the industry, and we can help you to recover your unpaid overseas accounts quickly and with high success rates. Contact us today for more information.