Business owners rely heavily on Debt Collection agencies in Bahrain as they allow businesses to maintain healthy levels of cash flow whilst reducing their overall close family debt burden, thus allowing them to concentrate on their main objective – that is to grow their business – whilst professional assistance manages the missing debt recoveries and other associated issues on their behalf.

For many businesses (particularly for those with many different customers or complicated collections), the best way to professionally and efficiently approach managing delinquent accounts is through the use of specialist collection agencies.

Business and legal context in Bahrain

The economy of Bahrain consists of multiple sectors that have developed diversified business activities. The banking, telecommunications, public utilities, construction, and service sectors each have a significant reliance on financial instruments used to extend credit and acquire customers, so when customers refuse to pay or take too long to pay, it immediately affects the company’s working capital, progress on projects, and future growth investment opportunities.

As such, companies need to adopt debt collection methods in Bahrain that respect local laws, legal processes, and the regulatory environment, while also balancing their aggressive approach to debt recovery with maintaining the company’s customer relationships and protecting their brand reputation.

What debt collection services typically cover

Debt collection services in Bahrain typically provide a full range of services throughout the lifecycle of a debtor’s account, from the time they first become delinquent to when they become legally liable for payment. In order to be more efficient and increase the likelihood of receiving funds owed, agencies do not rely on random phone calls but instead use structured methods and tools.

The most common types of Activities offered by these agencies are as follows:

• Soft Collection Services: Contacting the debtor to remind him/her that a payment is due.
• Hard Collection Services: Making more formal demands on the debtor for payment and negotiating with the debtor for a payment plan and/or settlement arrangements.
• Skip Tracing/Investigations: Determining the debtor’s current address and/or other accurate contact information.
• Pre-Legal Assistance: Preparing the legal forms, reviewing documentation, and advising on the various legal options available to pursue collection; coordinating with your attorney on the collection of your debt, if you have one.

Why do businesses in Bahrain use agencies

Bahraini organisations are facing similar challenges: resource constraints (Limited Collections), a growing backlog of accounts receivable, and growth in the demand to professionally manage receivables as obligations are converted to cash. A specialist in external debt collection will help convert overdue accounts into cash flow faster and with more efficient processes. The use of external debt collection services has several advantages, including:

• A staff of professionals who are trained in negotiation, dispute resolution, and local culture.
• The use of technology and structured workflows for follow-up communications, documenting efforts, and reporting on progress.
• An objective third party will be more likely to encourage timely responses from debtors.
• The flexibility to add or reduce capacity on an as-needed basis without having to hire permanent internal staff.

Best practices when selecting a debt collection partner in Bahrain

To safeguard performance concerning recovery and maintain a business’s corporate reputation when selecting a partner, the business must identify and establish expectations around specific criteria before beginning the selection process.

Key criteria to use for evaluating partner agencies include:

• The partner’s history of experience with Bahrain-based clients, as well as the partner’s experience in the applicable sectors, and their understanding of applicable laws and regulations.
• Providing a detailed report that identifies the total amount of open accounts, aged accounts, and all ongoing cases;
• Providing debtors with a clearly defined code of conduct, ensuring no harassment or unethical type of correspondence occurs;
• Implementing strict data security and confidentiality practices to maintain customer security and protect their sensitive information;
• Providing flexible solutions tailored to meet the needs of high-value clients, SMEs, and consumers; and
• It may also be beneficial to align the standards of your company’s internal credit and collections policies with those used by the selected partner agency so that customer(s) will be receiving a similar message and timeline from both companies.

How AlWasl supports Bahrain-based businesses

Partnership with a regional expert firm like AlWasl improves the overall quality of the recovery process while protecting the company’s relationship with its customers by offering structured, professional, and regionally-based (GCC) debt collection services for businesses in Bahrain.

AlWasl provides an extensive array of bankable and cashflow recovery solutions based on both its knowledge of the unique characteristics of the GCC region, as well as the leading-edge collection processes offered through technology.

The AlWasl Group has extensive experience supporting major corporations, banks, telecommunications companies, as well as other industries that tend to develop overdue accounts and stretch the resources of these organisations. By providing clearly defined procedures, compliant methods of communication, and ongoing reporting of performance, AlWasl allows businesses in Bahrain to manage their accounts receivable while relieving them from the burden of day-to-day collections activity.

AlWasl offers:

• Development of specialised collections programs created around each industry’s unique characteristics, varying levels of potential loss, and customers’ demographics.
• Global and culturally sensitive, multi-language representatives who comprehend the local culture and community.
• Good ethical and brand-safe methods of collection, which also maintain professional and corporate image while aggressively seeking payment from debtors.

Utilising the services of AlWasl, organisations can convert delinquent accounts receivable into stable cash flow, release internal personnel and departments to focus on growth, and create a more stable base for the business to expand into the future.

FAQs

1. What is the reason for outsourcing debt collection in Bahrain?

Outsourcing provides access to specialised teams, established procedures, and tools that improve both the timeliness and success of collection efforts, freeing up your internal team to work on their core responsibilities.

2. To what extent are debt collection services legitimately compliant with regulations in Bahrain?

A company providing debt collection services in Bahrain will provide services based on all local laws and regulations, and in accordance with documented, professional, fair and respectful principles designed to protect both the debtor and creditor.

3. Are third-party collections damaging my relationship with my customers? In what way does this occur?

When done properly, third-party collections provide a structured means to facilitate dialogue and ultimately support negotiations for mutually acceptable solutions between debtors and their creditors. Therefore, they often preserve the relationships between creditors and debtors rather than escalating conflict.

4. What types of businesses can AlWasl support and assist in Bahrain?

AlWasl can support and assist many different types of organisations, including banks and other finance companies, telecoms, utilities, and large mid-size businesses that manage reasonable amounts of consumer or commercial receivables.