Commercial Debt Recovery
Commercial Debt Recovery or Business Debt Recovery is a process where debt is recovered which is between business to business. If a business has to recover a debt from another business or from a number of businesses then this is called Commercial Debt and the process will be called Commercial Debt Recovery or Trade Debt Recovery. UAE Laws do not recognize any kind of interest if there is a delay in payment. However, any kind of compensation is acceptable if there is a breach of making payments as per the Law.
When a business deal is done between two companies when one company has to pay another for the services or delivery. This can be full payment, part payment, Instalments, half upfront and a half after completion of the job or full delivery. In short, there can be multiple reasons for this. When the first party fails to pay the fee or the amount they have to as per Law then the second party keeps the right to take legal action against the first party. Before discussing further let us tell you that, the types of “Commercial Debt Recoveries” will be;
- Unpaid Cheques
- Unpaid Invoices
- Unpaid Purchase Orders
Mostly these are unpaid invoices and cheques. When the first party fails to pay debts to a second company then this second company or party who has to receive the debts or receivables from the first party can engage a “Third Party Debt Collection” firm or a “Law Firm” expert in Commercial Debt Recovery or Trade Debt Recovery or also known as Business Debt Recovery.
The Recovery Process
The Recovery Process depends upon the work strategy of Recovery Firms or Law Firms. Few of them have a time limit of a few weeks and few give them a month or few months. Readers might be quite surprised here that usually less than a month time period is provided to Debtors then why few weeks here or even few months. Then let us tell you it is only granted when the Debt Recovery Firm finds that the debtor has serious intentions to pay off the debt but they need time as they are in trouble. If a matter can be recovered just by providing them with a little more time then it is not a bad deal.
This is one of the specialities of Debt Collection Agencies or the Law Firms, that they have knowledge of the market. They know about the market. They know about the old and new players(businesses)of the market. All it helps them to make a decision, all it helps them to make a strategy for a specific Debtor. Collection Agency or the Law Firm expert in Business Debt Collection or Commercial Debt Collection can figure it out better than those who have less experience to work with B2B.
Commercial Debt Recovery is also called or known as B2B Debt Recovery/Business to Business Debt Collection. The overdue invoices or unpaid cheques have to be paid, at the right time as this is the right of the creditor, once he has provided the services or goods. If these are not paid then debt collection services can be acquired. If the debt collection support does not work then a Civil Case can be filled like a Civil Case. POA or Power of Attorney is provided to Lawyers when a Case is filled. POA should also be provided for a debt recovery process.