Trading & distribution
Trade credit debt collection in the UAE
Distributor accounts, supply balances, consignment stock and re-export credit. The UAE runs on trade credit extended on relationship and practice rather than paperwork — which is exactly what makes it hard to recover when it goes wrong.
What we recover
- Open trade credit — goods supplied on 30, 60 or 90 day terms against a running account.
- Distributor and dealer balances, including stock supplied under a distribution agreement.
- Consignment stock sold but never accounted for.
- Re-export credit to buyers moving goods out of the region.
- Post-dated cheque defaults on instalment supply arrangements. See cheque recovery.
The structural weakness in trade credit
Trading relationships in this market frequently run for years on purchase orders, delivery notes, WhatsApp confirmations and mutual understanding. That is efficient, and it is genuinely how a great deal of legitimate business gets done — right up until an account goes bad, at which point the absence of a signed supply agreement becomes the central problem.
The good news is that it is rarely fatal. What actually carries a trade credit claim is usually the ordinary operational record:
| Evidence | Why it works |
|---|---|
| Signed delivery notes | Proves receipt. Defeats the most common defence, which is that goods were never supplied or were short-delivered. |
| A running statement of account | Shows a pattern of supply and payment. A debtor who paid the same way for three years cannot easily argue there was no arrangement. |
| Written acknowledgement of the balance | An email or message accepting the figure is frequently worth more than the invoices. Search your correspondence before you place the claim. |
| Purchase orders | Evidence each supply was requested rather than pushed. |
| Part payments | A payment against the account is an acknowledgement of the account. |
Traders typically place one problem account with us and mention, in passing, that there are eleven others they have written off. Those eleven are usually worth assessing. Under a no win, no fee arrangement placing them costs nothing, and written-off accounts against debtors who are still trading are among the most surprising recoveries we see.
Cross-border supply
Re-export and regional distribution means a meaningful share of these claims are against buyers outside the UAE, pursued through partner agencies in the debtor's own jurisdiction. The threshold questions are whether the debt is documented well enough to enforce anywhere and whether a judgment could be recognised where the debtor's assets are. See cross-border recovery.
How we work a trading claim
Standard five stages. Verification establishes which legal entity actually owes the money — a recurring problem in a market where groups trade through several licensed entities — and whether the debtor is still active.
Trading FAQs
Common questions
We have no signed supply agreement, just years of orders. Is that recoverable?
Usually yes. Signed delivery notes, a running statement and any written acknowledgement of the balance do most of the work. The absence of a formal agreement weakens the position without ending it.
The debtor is claiming the goods were defective — after eight months.
Timing is the tell. A quality objection raised eight months after delivery, and only once payment was demanded, is very different from one raised on receipt. Contemporaneous records normally resolve it.
Should we bother with accounts already written off?
Have them assessed. It costs nothing, and written-off accounts against debtors who are still trading are among the more surprising recoveries we see. If they are genuinely dead, we will tell you.
Our buyer is in another country. Can you still act?
Yes, through partner agencies in the debtor's jurisdiction. Whether it is worth pursuing depends on your documentation and on realistic enforcement where they are.