Not every business will take on debt, but many companies leverage debt as part of their financial strategy. This means certain types of businesses may have more debt than others, and certain industries may trend higher in a specific category of debt. Debt recovery Dubai can help you manage these debts and assist you if the company is dissolved.
Common Types of Outstanding Debts
There are a few common types of debt that almost every company will encounter.
- Secured Debt
If a business receives a loan or other credit, like a credit card because of specific assets or liquid collateral, they have secured debt. Though more uncommon than equipment leases and unsecured debt, some businesses can acquire secured credit options. As with equipment leases, secured debt may be reduced by surrendering the security deposit or collateral.
- Equipment Leases
Businesses that need large equipment and heavy machinery are likely to have equipment leases. Private schools and medical facilities are also familiar with leasing computer equipment and other technology. With equipment leases, businesses can generally return the equipment and lower their financial obligation to the lessor.
Moreover, the debt recovery Dubai agencies can help you find better options.
- Unsecured Debts
Arguably the most common type of debt that companies will have, unsecured debt is any lines of credit, loans, net thirty accounts, or unsecured credit cards a business may have. This can include things like inventory financing debt, as well. Unlike secured debt and equipment leases, the only way to satisfy an unsecured debt is through negotiating with creditors.
Therefore, if you need legal assistance in this matter, you may seek help from debt recovery Dubai agencies. They have not confined their services to one state. They are available in Sharjah, Ajman, Fujairah, Abu Dhabi, and other emirates of the UAE as well.