Debt recovery is understood that the creditors request individuals, organizations (debtors) are carrying debt to pay to creditors the money or property which is due or overdue under contract or agreement between the creditors and debtors or by decision of the competent.
For the enterprise, the debt collection has an important significance because it ensures financial soundness, profitability and ensure the use of the financial plan or the business plan of the enterprise. It is critical to the survival of the enterprise.
For individuals, the debt recovery will help avoid damage or loss of property to the creditor. In addition it also helps creditors can use a healthy financial plan in the future, as well as to ensure the lives of their families and themselves.
What is the specialized debt collection company? It can be said that the debt collection company should ensure the following factors:
Debt recovery methods is the basis, the first criterion for evaluating reputation of a debt recovery company. The company is reputable in debt collection is the company has legal measures, effective and professional and reputable methods in the recovery of debts for Clients. Debt collection measures is synthesize professional skills to successfully resolve the dispute, the complex cases at many different authorities. Depending on the circumstances that the debt recovery company has its working plan to suit specific circumstances.
For example, to personal debt recovery, first of all we need to determine whether a loan paper is legitimate or illegitimate. What time is the debt paper made to consider about the time in the lawsuits, interest payments? Debt in cash or in assets or rights to use assets .. whether has to subtract debt obligations or not? Having deceitful act of borrowing, or fraudulent elements of appropriation of property, to determine the behavior of subjects in civil or criminal? It was the original question that a professional debt recovery company should evaluate before receiving the case for individual customers.
For customers in debt collection are corporate: First we need to find out about the contract between the parties, whether legal or illegal, the signing time of the contract which is to define the statute in the case of lawsuits, the written documents between the parties in order to determine the liability, the invoices, warehousing bills to prove the product was delivered to the debtors, determined competent dispute resolution bodies which is courts or arbitration center. These are the initial procedures when receiving a business debt collection cases.
After receiving and exploitation of the initial information the customer provides, debt recovery company will make the appropriate plans to carry out the recovery of debts to customers. The method of effective debt collection includes:
1. Negotiation in Debt Recovery
By all means we should be collect the debt in this stage because if the parties negotiate and successfully negotiated, the parties will continue to maintain good relations, to avoid damage to health, psychological, spirit, help the parties to financial savings, time for other things. The collection of debts by negotiating methods should also follow these steps:
Step 1. Arrange profile, research, evaluate debt profile
Step 2. Searching for information related to debt
Step 3. Find out weaknesses of debtors
Step 4. Develop a plan of debt collection
Step 5. Make plans to collect debts
Step 6. Review and plan the next steps
There are three methods of negotiation which mainly led to the successful recovery of debts:
- Negotiate - emotional approach
- Negotiate - impact method to third party
- Negotiate - pressure method
2. Legal method of debt collection: lawsuit and denunciation
Lawsuit: This measure is used when negotiating efforts failed. This measure will result in lost time, effort and finances of both creditors and debt collector, therefore should be complied the following order:
Step 1: Gather lawsuit
Step 2: Review the case
Step 3: Pay the court fee in advance
Step 4: Notification of case acceptance
Step 5: The self-declaration
Step 6: The right to request the defendant's counterclaim
Step 7: The right to demand the independence of persons with relevant interests and obligations
Step 8: Copy records, documents
Step 9: Reconciliation and trial preparation
Step 10: First instance court
Denunciation: For the method to denounce, this as an extremely effective method is the double-edged sword for the use of this method because if the accusations are correct, the debtors will be dealt the criminal liability that will pay for our debts. However there are cases where after the accusations, the debtors have fled or implementation of the suspension, dissolution or termination of business activities leading to cause difficulties for the implementation of debt collection. There are also cases of failure to understand the rules of law, the accuser will be accused of slander acts or insulting the honor of debtors. This happens more frequently for debtors who are individuals. So to build a plan of debt collection through the high factor we need to perform in the following order:
Step 1: Determine the denunciations
Step 2: Determine where the loan transactions between parties
Step 3: Make denunciation
Step 4: Work with the police where loan transactions placed
Step 5: Request the competent authorities to conduct a blocked account debtors (if any)
Step 6: Join the case as a victim in the case
Step 7: Join negotiations with defendants to reduce damages in order to mitigate the criminal liability for the accused, defendant
II. Professionals, Skilled, Qualified Staffs, Specialists
In recent years, to meet the social needs, many of the company in debt recovery is formed. But most of all debt recovery company formed based on the available human resources which are acquaintances, relatives, even hired “gangster” to be their staffs. This led to the enormous implications because when people do not know about the law, do not have the knowledge, methods are legitimate, the debt collection implementation is very easy to violate the law. It can be the administrative violations, even worse is the criminal law violations. This accident has caused bad publicity for the company to recover debts.
For the professional, prestige debt recovery company, the debt recovery experts should be recruited an extremely careful manner. First professional expert in debt settlement must have a good moral character, have a healthy lifestyle. At the same time they must be people who have in-depth legal knowledge, skill, experience in handling disputes, complex cases. Especially, they should be the people who have the professional; moderately aggressive, powerful, but also requires flexibility, gentle and persuasive. When having such staffs, skills implementation to debt recovery plan is no longer a complex issue anymore.
III. Long-term business, many clients and successful cases
Debt collection company with prestigious brand is the company has been active in the field of debt collection service in a long time. Many customers and partners use their services by trust. By operating in a long time when the debt collector is capable of converging, summarizing and making measures, intensive professional and effective debt collection way. Furthermore, the existence in the long run also demonstrated that the company is operating efficiently and profitable in order to maintain their operations. At the same time the existence of a long time also proved that the professional skills of staffs of the company that applied for debt recovery are legal ways, effective and does not violate the law.
A debt collection company called prestige in the market as a company with a large number of customers at the rate of debt collection and the ability to achieve high levels of success. They can successfully resolve the debts arising from a variety of transactions, different economic sectors such as commercial business, construction, renting of equipment, machinery and supplies ... and potentially successfully resolved the disputes, complex cases.
In summary, with such debt recovery method, the number of customers and the results of debt collection, the number of years of operation and professional team in debt collection, Customers will have the basis to consider and evaluate a company which is a prestigious debt collection company.
Dragon Law Firm - Hotline: 1900.599.979
Hanoi Headquarter: FL14.6, VIMECO Bldg, Lot E9, Pham Hung Str., Trung Hoa Ward, Cau Giay Dist., Hanoi
Hai Phong Office: FL4.6, Khanh Hoi Bldg, Lot 2/3C, Le Hong Phong Str., Ngo Quyen Dist., Hai Phong