Our client was a leading logistics company in the UAE. They had an internal debt collection team that followed up the unpaid invoices, but they failed to deal with an outstanding debt of AED 200,000 for over 8 months.
Throughout this period, the debtor tried to avoid paying the delayed invoices by using different excuses and citing operational losses.
After 8 months of exhausting trials to recover the debt, the company’s manager decided to engage a third-party mediator to deal professionally with the case since he wanted to recover the debt without any legal procedures in order to maintain good relationships with his customer.
So he engaged “Quick Action”, a professional debt collection agency in Dubai, to assist him in recovering the overdue debt as soon as possible but via only amicable strategies.
Challenges
- The biggest challenge was the age of the debt, as it was older than 8 months, which led to less recovery possibility and a harder collection process.
- The large amount of debt from a single account was also a challenge since the larger the debt is, the harder to recover.
- The internal team became overwhelmed and couldn’t achieve progress, and we had to take full responsibility for managing the debt.
- The most essential issue for the client was the need to maintain good relationships with his customers while collecting the overdue debt to guarantee not to lose his current customers or have a bad reputation that may affect his business in the future.
Solution
Our team of data analysts started to examine the overdue account to decide the most suitable strategy for this case.
Our tailored strategy totally depended on amicable solutions, so our employees contacted the debtor and began a chain of negotiations with him.
Through the collection process, we were careful to show our empathy with the debtor and work with him as if we are part of his team to avoid his resistance. Moreover, we helped him in solving his business troubles by suggesting some efficient solutions.
This approach helped us avoid any legal action, and also it made the debtor feel grateful to us and the creditor, so he became more responsive to our suggestions to manage the debt.
Result
We reached a satisfactory solution for the two parties by breaking the amount of the debt into two installments.
Finally, we successfully collected the full amount of the debt within only 6 weeks.
The client was satisfied since we recovered the overdue debt without damaging the customer’s relationships. Instead, we ensured the continuation of their business partnership.
Frequently Asked Questions
How long did it take to recover the debt?
We secured full recovery of the amount in 6 weeks.
Was legal action necessary?
No, all dues were recovered through amicable steps and direct talks only.
How did you maintain good relationships with the debtor?
Our team showed empathy, offered supportive options, and acted as an extension of the debtor’s team, which encouraged full cooperation.
What was the main challenge in this case?
The main difficulty was the long period and large value of the overdue amount, which made recovery more demanding.
