DEBT COLLECTION IN LIBERIA

The collection of payments is an essential part of many businesses worldwide. In Africa, for many companies, debt collection has also become an essential part of the operation. We in CIS DRS monitor any changes in legislation and business practices in the field of debt collection and recovery in Africa.

As statistics show, the payment culture in Liberia has not shown much improvement over the last decade. Many companies struggle with returning late payments, which causes many financial problems. In general, in accordance with established practice and legal requirements, there are 2 ways on how to solve this problem.

The first option is to turn to the Debt Court in Liberia for assistance. This court has an exclusive jurisdiction in civil actions to obtain the payments of debts of a particular amount. The second option is to use the services of a debt collection agency. As the tendency shows many B2B companies in Liberia prefer to choose the 2nd option.

The process of debt collection itself has several peculiarities. Depending on the country there could be some specifics regarding codes of conduct, legal requirements, and business practices. Our research teams in CIS DRS are always up-to-date with any changes in the field.

Liberia is a state, which is divided into 15 counties. Our long-established partnerships worldwide allow us to provide our services in each of the counties of Liberia. Generally, our strategy for debt collection has the following steps:

1. We examine the financial status of the company of a debtor and find additional contacts.
2. We analyze gathered information, and come up with a possible set of actions.
3. The letter of 1st demand is sent to notify the debtor of an issue.
4. Our lawyers are conducting negotiations with the debtors to achieve the best result.
5. In case of a refusal of amicable settlement of the case we provide our clients with the next possible steps.

Dealing with debt recovery could be seen as a complicated process. Nevertheless, there are still some advantages of the service.

Firstly, it is more efficient. As a rule, a lot of commercial companies have a lot of daily tasks to perform and it is quite easy to lose track of such things as returning the money from partners for services or goods provided. That is why outsourcing a debt collection agency is the best solution in this case since it will allow businesses to concentrate on other tasks. Secondly, it is more time-saving than the court proceeding. We believe that it is faster to reach and negotiate the deal with the debtor rather than wait for governmental bodies like courts to react to the case.

Our experts in CIS DRS understand the urgency and the importance of debt collection and recovery. That is why our main goal is to provide you with an excellent service, recover the payments for you and keep the reputation undamaged.