Full Recovery Through Strategic Negotiation

A leading construction supplier in the UAE supplied materials valued at AED 120,000 to a contractor who defaulted on paying the due amounts on the scheduled date.

The creditor followed up with the debtor for about 6 months without any result because the contractor claimed to have cash-flow issues due to delays in executing some projects.

Then, the client decided to hire a specialized debt collection agency in Dubai to take responsibility for collecting the debt professionally while preserving good relationships with the debtor, and he finally chose “Quick Action” to carry out this task.

Challenges

In this case, the debtor was a valued client, so the creditor didn’t want to lose this business relationship and was afraid of causing any damage to his reputation.

Also, the client refused any legal escalations, and he desired to keep the collection process amicable to ensure good relationships with his customer.

Besides, the debt age was more than 6 months, which made negotiations harder and less effective.

So we faced two challenges due to the age of the debt and the client’s desire to avoid any legal action while maintaining a positive working relationship with the debtor.

Solution

We analyze the claim carefully and choose a suitable strategy based only on soft collection practices.

After the claim’s analysis, we have concluded that the primary reason for the debtor’s delay in repaying the debt is his strong relationship with our client, since we found that he was indeed experiencing some cash flow issues, but he was still capable of repaying the debt.

However, the debtor has chosen to postpone payment in order to benefit from the cash flow, relying on the assurance that the creditor would not take any legal action against him due to their strong relationship.

So our professional team of debt collectors started to negotiate professionally with the debtor, they had to be friendly and firm at the same time especially when we realized that the debtor also didn’t want to harm his strong relationship with the creditor because he is one of the leading construction suppliers in Dubai and losing the relationship with him may harm his business.

Finally, our solution-oriented negotiations with the debtor yielded great results since we reached an agreement for a full settlement.

Result

“You’ve achieved unexpected success!” That’s how our client responded when we informed him, just three weeks after taking the case, that the full debt would be recovered within days, all without legal action and while preserving a strong relationship with his customer.

Finally, within less than a month, the debtor paid AED 120,000 in one lump sum, avoiding further legal escalation while preserving their business relationship with the supplier.