Debt collection services
Business-to-business receivables recovered with an understanding of how trade actually works.
We collect trade debts between businesses: supply contracts, distribution accounts, running accounts, letters of credit that were not honoured and guarantees that were not paid. Amicable recovery first, then the courts, with the commercial relationship in mind.
Trade debt is different from a single unpaid invoice. It arises from a running relationship with a customer, a distributor or a supplier, often with a credit limit, a series of deliveries, part payments, credit notes, returns and a statement of account that both sides dispute in some detail. Collecting it well requires reconstructing the account, separating what is genuinely owed from what is contested, and pursuing the balance in a way that does not destroy a relationship the client may want to keep. The Commercial Transactions Law, the Civil Code and the Commercial Agencies Law govern these relationships, and the UAE courts rely heavily on account statements and expert accountants in trade disputes.
The Debt Collection Department of Khalifa Al Sada Advocates & Legal Consultants collects trade debts for manufacturers, wholesalers, distributors and traders across the UAE and abroad. Our collection strategy is built for each account, and we assure a process that is cost-effective and time-efficient.
We collect trade debts for:
We handle single accounts and the full receivables ledger of a trading business.
We start by reconstructing the account from the contract or credit application, the purchase orders, the delivery notes, the invoices, the credit notes and the payments, and we produce a reconciled statement that will stand up before the debtor and the court. We then pursue the balance amicably: a formal demand, negotiation, a payment plan secured by cheques or a guarantee, and where the customer is important to you, a settlement that preserves the relationship on tighter terms. We also advise on the retention of title, stop-supply rights and the recovery of goods where the contract allows it.
Where amicable recovery fails we file the payment order or the commercial claim, present the reconciled account, work with the court-appointed accounting expert, and obtain judgment. We enforce against the debtor's bank accounts, stock, receivables and property, and we pursue guarantors and, where the legal form allows, partners. For accounts with a foreign customer or supplier we work through our associate firms abroad. Alongside recovery we help clients tighten their credit terms, invoicing and documentation so that the next default is smaller and easier to collect.
Trade debt is won on the account. Our team is used to reconstructing complex statements, and our advocates know how the courts and their accounting experts test them. We also understand that a trade customer is often worth keeping, and we collect with that in mind when you ask us to.
We work in Arabic and English, and through our desks in Russian, Hindi and Turkish, from a dedicated office in Dubai with its own contact lines.
We rebuild the statement of account from the documents and separate the undisputed balance from any contested items.
We demand the balance and negotiate payment, a secured plan or a relationship-preserving settlement.
We file the payment order or claim and present the reconciled account to the court and its expert.
We execute the judgment against the debtor's assets and pursue guarantors.
We reconcile the account line by line and, if a claim is filed, the court usually appoints an accounting expert. A well-reconstructed account is the strongest evidence you can have.
If the contract reserves title until payment, and the goods are identifiable, recovery is possible. We advise on the contract and the practical steps.
Yes. Many clients ask us to recover the arrears while they continue on cash or tighter terms. We structure the settlement accordingly.
Clear credit applications, signed delivery notes, monthly statements, prompt follow-up and, where possible, security. We review your documents and suggest changes.
Insights
6 Nov 2023 3 min read
Unpaid invoices strain cash flow, damage credibility and can create legal problems of their own. Why a structured approach to collecting what you are owed is part of running a healthy business.
Read more11 Sept 2023 4 min read
Eight practices that reduce bad debt and make recovery faster: a written process, a collection policy, clear communication rules, professionalism, payment plans, technology, outside help and legal action as a last resort.
Read moreConsultation
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