Managing non-payment in industrial equipment trade with South Korea requires a strategic approach to debt recovery. This article outlines a three-phase recovery system and the debt recovery process to effectively manage non-payment issues in the industrial equipment trade with South Korea. By understanding the recovery system and debt recovery process, companies can navigate through the challenges of non-payment and protect their financial interests in international trade relationships.
Key Takeaways
- Implement a three-phase recovery system for non-payment to efficiently recover company funds.
- Utilize skip-tracing and investigative methods to obtain accurate financial and contact information on debtors.
- Engage in proactive communication with debtors through various channels to resolve payment issues effectively.
- Consider legal action as a strategic step in the debt recovery process when other attempts fail.
- Understand the cost structure and rates associated with debt recovery services to make informed decisions on pursuing legal action.
Recovery System for Non-Payment
Phase One
In our first phase of the Recovery System, we act swiftly. Within 24 hours of a non-payment report, our team springs into action. We dispatch the initial letter, setting the tone for urgency and seriousness. Our collectors engage in comprehensive skip-tracing to secure the most accurate financial and contact details of the debtor.
Efforts to reach a resolution are multifaceted—phone calls, emails, text messages, and faxes are all employed. We’re persistent, with daily attempts to communicate for the first 30 to 60 days. Our goal is clear: to settle the matter before escalating to Phase Two.
If resolution efforts during Phase One prove unsuccessful, we don’t hesitate to move forward. Our next step is to involve our affiliated attorneys, who are well-versed in the local jurisdiction of the debtor.
Here’s a snapshot of our initial contact strategy:
- First letter sent via US Mail
- Skip-tracing and investigation
- Daily contact attempts using multiple channels
Our approach is designed to maximize the chances of recovery at this early stage, minimizing the need for legal intervention. However, should the need arise, we are prepared to take the necessary steps to protect your interests.
Phase Two
Once we escalate the matter to Phase Two, our affiliated attorneys take the helm. Immediate action is key. The attorney sends a series of demand letters and makes direct phone calls to the debtor. Despite these intensified efforts, some cases remain unresolved. At this juncture, we assess the situation and prepare to advise you on the potential for recovery.
- The attorney drafts and sends the first demand letter.
- Persistent attempts to contact the debtor via phone follow.
- If these efforts fail, we provide a detailed report and our recommendation.
We’re committed to transparency. If Phase Two doesn’t yield results, we’ll outline the next steps without any hidden costs. Our goal is to navigate you through this complex process with clarity and efficiency.
Phase Three
At the crossroads of Phase Three, we face a critical decision. If our investigation suggests recovery is unlikely, we advise closing the case, incurring no cost to you. Conversely, should litigation seem viable, the choice is yours. Opting out means no fees owed, while proceeding requires covering upfront legal costs, typically $600-$700.
Should you choose to litigate, we stand ready to initiate legal proceedings on your behalf, seeking full recompense for all monies owed.
Our fee structure is straightforward and competitive, hinging on the age and number of claims. Here’s a snapshot:
| Claims Submitted | Accounts < 1 Year | Accounts > 1 Year | Accounts < $1000 | Attorney Placed |
|---|---|---|---|---|
| 1-9 | 30% | 40% | 50% | 50% |
| 10+ | 27% | 35% | 40% | 50% |
Remember, our goal is to maximize your recovery while minimizing your risk. We’re in this together, navigating the complexities of international equipment trade with South Korea. Your success is our success.
Debt Recovery Process
Initial Contact
When we face non-payment, our first step is to establish initial contact with the debtor. This is a critical phase where we aim to resolve the issue amicably. We reach out through various channels: phone calls, emails, and letters. Our goal is to engage in a dialogue and find a mutually acceptable solution.
Our approach is firm yet respectful, ensuring that we maintain a professional relationship while asserting our client’s rights.
If the debtor is unresponsive or unwilling to settle, we promptly escalate the matter. Below is a summary of our collection rates, which vary depending on the age and size of the account, as well as the number of claims:
- Accounts under 1 year: 30% (1-9 claims) or 27% (10+ claims) of the amount collected.
- Accounts over 1 year: 40% (1-9 claims) or 35% (10+ claims) of the amount collected.
- Accounts under $1000.00: 50% of the amount collected, regardless of the number of claims.
- Accounts placed with an attorney: 50% of the amount collected.
Our collection rates are competitive and designed to incentivize recovery while considering the specifics of each case. Should initial contact not yield results, we are prepared to take the necessary legal steps to protect our clients’ interests.
Legal Action
When diplomacy fails, we escalate. Legal action is a decisive step in our debt recovery process. We partner with local attorneys within the debtor’s jurisdiction to exert legal pressure. These legal experts draft demand letters and make persistent calls, ensuring the debtor understands the seriousness of the situation.
If the debtor remains unresponsive, we’re prepared to file a lawsuit. Litigation is a powerful tool, but it comes with costs. Clients must cover upfront legal fees, typically ranging from $600 to $700. However, if litigation doesn’t yield results, you owe us nothing further.
We stand by our clients every step of the way, from initial contact to potential courtroom confrontations.
Our fee structure is transparent and contingent on recovery. Here’s a quick breakdown:
- Accounts under 1 year: 30% of the amount collected.
- Accounts over 1 year: 40% of the amount collected.
- Accounts under $1000: 50% of the amount collected.
- Accounts placed with an attorney: 50% of the amount collected.
For larger volumes of claims, we offer reduced rates, recognizing the trust our clients place in us with multiple accounts.
Collection Rates
When it comes to collection rates, we’ve structured them to be competitive and fair. The more claims you submit, the lower the percentage we take. It’s that simple. For fewer than ten claims, expect to pay 30% for recent accounts and up to 50% for older or smaller debts. Surpassing ten claims? The rates get even better.
Here’s a quick breakdown:
-
For 1-9 claims:
- Under 1 year: 30%
- Over 1 year: 40%
- Under $1000: 50%
- With an attorney: 50%
-
For 10+ claims:
- Under 1 year: 27%
- Over 1 year: 35%
- Under $1000: 40%
- With an attorney: 50%
Remember, these rates are designed to align with your success. The more we recover, the more you retain. It’s a partnership where your financial recovery is the core of our service.
Frequently Asked Questions
What is the Recovery System for Non-Payment in industrial equipment trade with South Korea?
The Recovery System for Non-Payment involves three phases: Phase One includes sending letters to debtors, skip-tracing, and attempting to contact debtors for resolution. Phase Two involves forwarding the case to affiliated attorneys for legal action. Phase Three includes recommendations for closure or litigation based on investigation and debtor’s assets.
How does the Debt Recovery Process work in industrial equipment trade with South Korea?
The Debt Recovery Process includes initial contact with debtors, legal action through attorneys, and collection rates based on the age and amount of the accounts. Clients have the option to proceed with legal action or pursue standard collection activities.
What happens during Phase One of the Recovery System for Non-Payment?
During Phase One, letters are sent to debtors, skip-tracing and investigation are conducted, and attempts are made to contact debtors for resolution within the first 30 to 60 days. If unsuccessful, the case proceeds to Phase Two.
What is the role of affiliated attorneys in Phase Two of the Recovery System for Non-Payment?
In Phase Two, the case is forwarded to affiliated attorneys who draft letters demanding payment from debtors and attempt to reach a conclusion through communication. Clients are informed of the case status and recommendations for further action.
What are the options for clients in Phase Three of the Recovery System for Non-Payment?
In Phase Three, clients have the option to close the case if recovery is unlikely without owing fees, or proceed with litigation by paying upfront legal costs. The affiliated attorney will file a lawsuit on behalf of the client, and if unsuccessful, no fees are owed.
How are collection rates determined in the Debt Recovery Process for industrial equipment trade with South Korea?
Collection rates are based on the number of claims submitted within the first week, the age and amount of the accounts, and whether accounts are placed with an attorney. Rates range from 27% to 50% of the amount collected depending on these factors.
