Customer relations are the key to any successful business. Maintaining the vital ties formed during prosperous times should not be jeopardised during difficult times. When collecting a debt, it is crucial to remember to keep things lighthearted, at least at first. The key to debt collection in Benin is to act quickly. In this article, we will explore how crucial debt collection is for corporate organisations and why they should prioritise debt collection.
Importance Of Debt Collection Companies
1. Increased Authority
When a debt is submitted for collection and a payment demand is made, there is a considerably stronger sense of urgency to resolve the case. Debt recovery firms use advanced workflows and other technology to ensure that debts are always processed on time, so nothing lags behind. If you are unable to trace your debtor, the collection agency will have the tools and resources to first locate the debtor and then make a demand for payment.
2. Saves the business relationship
Expert lawyers in Benin will not only resolve the majority of your outstanding debts, but they will also help recover and sustain business relationships by preventing recurrent late payments. Effective and professional debt collection in Benin services has the impact of influencing customer behaviour, such that previously slow payers now prioritise a supplier's payment merely because they know the supplier has an effective method to chase unpaid debts.
3. Secure instalment payments
Our skilled lawyers in Benin do more than just demand payment on a debt. Experienced debt collection in Benin agencies has the ability to work closely with debtors to analyse their ability to pay and determine if the debtor is actually attempting to settle their debt. The ideal way to manage a payment arrangement is to set up a direct debit from the debtor's bank account. A collection firm with the correct technology can manage any number of concurrent payment arrangements, guaranteeing that if a payment is missed, they are immediately on the phone to find out why.
4. Review of Credit Documentation
Your credit documentation describes the terms and conditions that a client must follow during debt collection in Benin, including how and when they must pay for your products and services. If a payment term breach happens due to an unpaid invoice, your credit paperwork aids in the debt collection procedure.
Some debt collection in Benin agencies provides a document review service. They can examine and uncover flaws in your terms and conditions, which can be amended to provide you with an advantage in the debt collection process. You can increase your chances of getting compensated by having your documents evaluated by an experienced debt recovery business.
Process of debt recovery
Our skilled lawyers in Benin work intensively with any case related to debt recovery. The best practice is to solve the case without taking it further to the court but once things slip out of hand our professionals have the skilled knowledge to get the work done in the courtroom. But the main motive lies to solve the debt collection in Benin in the framework of an attempt for amicable settlement prior to court litigation which has the following steps:
Step 1. Investigation of debtor information and Preliminary Report
The first step involves the investigation of the debtor. All the information that may be needed further in the process is thereby collected by our skilled lawyers in Benin, in this very first step. His/her name, address, workplace, identity proof and everything related to the investigation is collected and a preliminary report is formed. A preliminary report is the detailed legal description of the property, including the property boundaries, lot size, and any established easements or encroachments. In a nutshell, all the information is pointed down in the report.
Step 2. Definition of the collection strategy in consultation with the client
Prior to getting started with the work, a structured strategy is formed by our expert lawyers in Benin while taking the client in the loop. What needs to be done and in what manner is decided in this step and all this process is done with the consultation of our clients so that they don't miss any important information.
Step 3. First legal notification to debtors (by bailiff), reminding them of their obligations
Once a detailed view is taken by the client the next step involves sending legal documents to the debtor in order to get the debt back from the person. It's more like a reminder of how much amount they have to pay to their creditors. Detailed legal notification is shared with the debtor in which all the obligations are mentioned for the debt recovery.
Step 4. Negotiations by telephone or in-person
Before taking the process further to the legal room our skilled professionals first talk with the debtors outside the court in order to make the settlement done, this step includes drafting an out-of-court settlement agreement. Negotiations are made with the debtors by telephone call or in-person to get the work done peacefully.
Step 5. Monitoring and collecting payments
This is the step where the debt recovery is finally done and the debtor returns the money back to our client with the help of our negotiations made with the person. Collection of payment is finally done in this stage and also carefully monitored according to the preliminary report so that all the debts get recovered and the clients get the best of our services.
Step 6. In case of default, a reminder letter
Ofcourse there are some people who do not return the money till here but you as our client need not worry about the same. If the debtor is still a defaulter till this stage a reminder letter will be sent to the person that we are now going further with the legal procedure and the person needs to be present for the same.
Step 7. Drafting of court injunction for payment and asset seizure requests
When the debtor does not agree to repay the debt the case is hence taken forward by our legal experts to the court for payment and seizure requests are hence made. Obtaining a Request and Order to Seize Property is one method of collecting the debt. A court order instructing a court-appointed officer to seize your property. The order is valid for 90 days and can be renewed. Payment of the judgement within 21 days of the judgement prevents property seizure.
We at Kafui & Partners work intensively with our skilled professionals to help clients in debt recovery in numerous locations in West Africa. Additionally, we also provide services in company incorporation in Benin. Money recovery is as important to a corporation as customer interactions. To recoup that money, a harmonic strategy must be used so that money flows back and relationships remain intact. While the country's economic status is continually improving, it is critical to free the markets of debts so that healthy competition prevails and MNCs are encouraged to rapidly spend in the country's market.