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Debt recovery is a discourse that will always resonate in every business clime as most businesses whether small, medium and large scale enterprise depend on credits for sustenance of their operations and growth, as well as private individuals for their personal use. As this is the case, there are also high possibilities of default in repayment obligations on the part of the borrower. When this becomes the case, what remedies are available to the creditor? The answer to this poser has been concisely explained in the most simple terms in this Article by our Dispute Resolution and Risk Management practice group (DRRM), as are applicable to Nigerian jurisdiction.

To Bond or Not to Bond - Securing Debts When lending money or extending credit to individuals, it’s crucial to protect your interests and ensure the repayment of debts owed to you. In South Africa, there are legal mechanisms available to secure debts owed by debtors, providing creditors with avenues for recourse in the event of default or breach of agreement. Here, we explore two common methods: acknowledgment of debt and notarial bonds. https://bit.ly/3U2JJfW

Steps for Debt Recovery in Nigeria The following are Legal steps in recovering debt from a firm or an individual in Nigeria: Step 1: Engage the debtor to settle the debt with a focus to maintain the relationship between creditor and debtor. This is simply negotiation. It can be done by the creditor himself or through his lawyer. Step 2: If Step 1 above fails get the service of a lawyer, and provide necessary documents such as delivery notes, invoices, written agreements, letters, emails, etc. Step 3: The lawyer will peruse and evaluate the documents ascertaining whether your claim qualifies as debt and the corresponding action plan. Step 4: If the attorney determines that the claim is a debt, he or she will send the debtor a Letter of Demand outlining the amount due, including any interest that has accrued, and giving them a deadline to pay before legal action is instituted against them. Step 5: The “Undefended List Procedure,” “Summary Judgment Procedure,” or other fast-track court procedures allowed by various statutes authorizing debt recovery may be used by a creditor’s attorney to institute a lawsuit against a stubborn debtor. The amount of the debt determines which court should handle the legal proceeding. In Nigeria, it could be started in the Small Claims Court, Magistrate Court, State High Court, or Federal High Court. I hope this helps. #debtrecoveryconsultant #debt #debtrecovery #creditrisk #creditanalyst

A $26 billion economy with a $21 billion defaulted debt pile, the story of the week for me was about #Zimbabwe: first time I cover the southern African country. The government has hired financial and legal advisers to help it navigate potential talks with international creditors. Paris-based boutique firm GSA & Co. SAS, founded by a former Rothschild & Co. banker, and law firm Kepler Karst, which specializes in debt restructuring and insolvency, signed engagement letters to provide Zimbabwe with advice on debt management. In arrears with the World Bank and bilateral creditors, the nation has been locked out of international debt markets since 1999 after a default, and its interest payments have ballooned. The nation’s expected bid to restructure its debts comes amid renewed volatility in its economy. Read full story here via Bloomberg News #emergingmarkets #debt #Africa https://lnkd.in/ehbVaPH9

Ever wondered about the intricate dance of legal steps when it comes to recovering debts in South Africa? 🇿🇦 Let's dive into the complicated world of Debt Recovery Procedures: 1️⃣ Letter of Demand: Start with a formal payment request. Debtors, it's time to settle up! 2️⃣ Summons: Enter the formal court. The debtor needs to defend the claim. 3️⃣ Default Judgment: No response? Default judgment kicks in. The court orders payment of the outstanding debt. 4️⃣ Warrant of Execution: The sheriff steps in. Seize assets to recover what's owed. 5️⃣ Garnishee Order: Are assets still MIA? Time for a strategic move. Court-ordered deduction from salary or account. 6️⃣ Business Rescue: Is insolvency on the horizon? Explore business rescue to restructure and avoid liquidation. Understanding the South African legal landscape for debt recovery is key! 🔍💪 Whether you're a creditor or debtor, these insights shed light on the steps in this complex journey. 🌐💬 Read more on our article here: https://lnkd.in/eJtFyDJC #DebtRecoveryInsights #LegalJourney #BusinessRescue #FinancialWisdom

Money Lenders in Uganda and Creditors beware of this or you stand to lose in the Courts of Law; The Legal system requires that you provide proof of your debt claim. A Company resolution to borrow from you is not sufficient proof. As a creditor, you may get back your money from a debtor (someone you gave a loan) after obtaining a Court decree. Isaac, what if I have evidence on email or WhatsApp? Mere admission on electronic correspondences is not sufficient to prove debt. (It can be used but must be added to other evidence) According to section 28 of The Evidence Act, admissions are not conclusive proof but may estop. Here is your key takeaway; - Document every transaction - Issue receipts and send dated demand notices - You will need to go to court to prove your debt - You will recover your debt by a court decree and in the manner specified by the Court. Have You learned something law today? 📌Repost to learn with your connections. #law #money #debtrecovery

In these challenging times for the credit industry in Nigeria, the question of using tough recovery methods arises. While it's tempting to resort to aggressive tactics, we must consider the broader impact and effectiveness of such approaches. I believe that in addition to being mindful of regulatory guidelines, it's crucial to prioritize empathy and understanding in our recovery efforts. Building positive relationships with debtors can often lead to more sustainable and successful outcomes. What are your thoughts on this approach? Have you found that empathy and understanding yield better results in debt recovery, even in tough economic conditions? Share your experiences and insights below! #DebtRecovery #CreditIndustry #Nigeria #Empathy #EffectiveRecovery

I had the pleasure of discussing the outcomes of the Mo Ibrahim Foundation's latest report, "Financing #Africa: Where is the Money?", on Citizen TV. Special thanks to Olive Burrows for the great discussion. You can catch the segment starting at 3:40 min here: https://lnkd.in/emjYHb6q.

Debt Factoring provides access to short-term liquidity as businesses are able to monetize unpaid invoices and obtain immediate cash. It reduces the pressure on businesses as sales ledger administration and collections can also be undertaken by the Factor. In this post, we provide an overview of Debt Factoring, parties involved, its purpose, its primary types, a comparison with Securitisation, and the legal framework in Nigeria. #OlaniwunAjayi #FCMP #CapitalMarkets #Finance #OALP

Approximately only three per cent of the population in Nigeria own a credit card. The background to this problem are many but one crucial aspect is also the lack of understanding amongst the people. Many people use the terms credit and loans interchangeably, but they are actually different concepts. Understanding the distinction is important for managing your finances effectively. Here's a quick guide to differentiate between Credit and Loan