Successful Resolution in Cross-Border Debt Case
A manufacturing company in the UAE wanted to replace its internal collection department with a professional debt collection agency due to its increasing cross-border B2B transactions.
The company started hiring many collection agencies to choose the most efficient one for managing its debt collection operations.
So the company engaged “Quick Action” in a cross-border debt case in which the debtor defaulted on paying an AED 1 Million debt.
Challenges
The debtor’s location outside the UAE led to many challenges because Jurisdictional differences between the two countries make the process of collecting the debt legally very complicated.
Although we coordinated with a professional legal consultant in the debtor’s country, we had to make intensive efforts in amicable solutions in order to avoid being involved in the Complexities of legal procedures and enforcement that need more time and expenses.
Our international debt collection team is not only professional bilingual employees, but they also have deep knowledge of the different cultural, legal, and social aspects of the debtor’s country, so they were able to communicate with the debtor efficiently to avoid any misconceptions through the collection process.
Solution
We collaborated with a law firm in the debtor’s country in order to make communication easier and ensure compliance with international protocols.
Despite this, we worked on an extrajudicial collection process according to a pre-determined strategy.
We started by contacting the debtor in different ways, but without disturbing him. Because disturbance may make the debtor unresponsive and aggressive.
So this initial phase of contacting the debtor took more time than usual, but finally, we succeeded in building a respectful relationship with him, paving the way for the next step in the collection strategy.
Our strategy was based on dividing the debt into small installments over an extended period.
So, our professional debt collectors conducted negotiations with the debtor through many online meetings. Initially, he resisted repaying the whole amount of the debt and sought to reduce the debt, but finally, we succeeded in convincing him to pay the full debt in installments.
Result
The debtor agreed to our suggested repayment plan to repay the full amount of the debt in installments, and finally, the whole debt was recovered within 9 months.
Our client was satisfied because we avoided any legal action that may have led to a longer collection process, more expenses, and a bad relationship with his customer.
After this achievement, the client chose us to replace his in-house collection team in all cross-border debt collection cases.