To recover debts effectively and efficiently, a company needs a process in place allowing:
Banks Legal has a proven track record in obtaining results and can help you.
In the UAE, good debt recovery strategy is divided into two stages
Carrying out the following steps in an organised and consistent manner is a proven successful method of collecting debts in the UAE, and is much more time and cost efficient than going direct to courts.
Gather all relevant information relating to the debt, including copies of any agreements, orders, invoices, bills of lading/air way bills, delivery notes, copies of correspondence and the full contact details of the debtor.
If possible make enquiries, to assess the status of the debtor and if there are likely to be assets in the jurisdiction applicable to the possible recovery.
You may find debtors have ceased trading and/or left the UAE, and/or are already the subject of claims. This can impact the commercial viability of pursuing the debt, depending upon the amount in question.
Contact the debtor via email or telephone, and meetings. If a response is received, at this point make a further assessment of the best course of action. This may include agreeing a payment plan with the debtor.
If no response is received, or considered pointless to pursue further communication, you may send a letter before action to the debtor requesting debt settlement and reserving your right to take further action, including issuing proceedings against the debtor for the debt recovery.
Where the debtor has bounced cheques, you may also reserve your right to take action for the bounced cheques (this can be persuasive as in the United Arab Emirates dishonouring cheques is a criminal offence punishable by imprisonment).
It is also an option at this stage to serve a notarised letter of demand.
Should Stage 1 not result in payment, you may decide to proceed with taking court action for recovery of moneys from the debtor.
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