Every company, small, medium, or big that’s within the financial sector always has ‘pending or receivable income’ within the sort of dues owed by customers. If you check out an Annual Accounts Statement there’s likely to be a column denoting ‘bad debts’ or pending dues. A number of these amounts could also be recovered, some not in the least, or through long-winding legal procedures which will stretch through a few years. The international firm Price water house Coopers (PwC) estimated that within the Mid 2000s, external collection agencies recovered debts to the tune of $30 billion annually. This is a whopping amount.
In such cases, companies may either affect receivables through internal mechanisms or outsource the debt collection Dubai of such amounts owed, to external debt collection agencies. Such a workplace is named a Debt Collection Agency. These agencies are governed by the regulations set by the authorities of the UAE. They need the knowledge and therefore the expertise of the dos and don’ts related to the collection of debts.
Many benefits are accruing from hiring a Debt Collection Agency in UAE, among these are:
1- The internal accounts department of a corporation is typically liable for collecting amounts thanks to the company; however, ‘ receivables’ as long-standing debts are mentioned require extensive time, skill, effort, and training. Since delays can result horribly.
2- Sales teams in companies that are owed amounts by clients. They are sometimes not paid their commissions or incentives if monies are outstanding from customers. This forces salespeople to spend an excellent deal of their time. Working to recover the cash instead of doing actual sales calls or sales generation for future revenues. This greatly impacts the revenues of a business.
3- Acquiring new customers is an upscale task. But retaining existing customers may be a key thing about the success and longevity of each business. Playing the role of ‘bad cop’ in debt recovery from existing customers isn’t a function that the majority of companies anticipate to because it can have adverse impacts on them. Employing a third-party service to send notices for debt recovery. Usually spurs the person or company owning the cash to urge into action. Without seriously affecting the relationship with the corporate.
4- In business-to-business circles, the unwritten policy is to prolong bill payments. For as long as possible to permit better cash flows. In some cases, unless a set agency intervenes to demand payment, checks or outstanding amounts aren’t released against invoices.
5- By paying a debt collection agency or agent a hard and fast salary for collecting debts regardless of the quantity owed, companies save tons of cash which otherwise would be spending salaries and time, and energy in training them to collect outstanding dues effectively. Most of the companies only pay them after making a successful debt recovery.
Especially, for companies within the financial sector like banks, extending lines of credit. To existing and new customers depends on an excellent deal on keeping ‘ aging receivables’ to the minimum. Only by fuelling growth, can banks achieve achieving their target deposits and revenues. Therefore by employing a commercial collection agency, the bank can expect to recover amounts early, retain customer relationships and credit worthiness also as make sure that their financial books keep a healthy status.