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Handling Unpaid Invoices in USA-Switzerland Machinery Trade

When it comes to handling unpaid invoices in USA-Switzerland machinery trade, having a recovery system in place is crucial for companies to recover their funds. This article will explore a 3-phase recovery system, including initial recovery steps, legal action, and recommendations and costs.

Key Takeaways

  • A 3-phase recovery system is essential for companies to recover unpaid invoices in the USA-Switzerland machinery trade.
  • Phase One involves sending letters to debtors, skip-tracing, and attempting to contact debtors for resolution within 24 hours of placing an account.
  • Phase Two includes forwarding the case to an affiliated attorney, drafting demand letters, and making further attempts to contact the debtor.
  • Phase Three offers recommendations for closure of the case or proceeding with legal action, with associated costs and collection rates.
  • Rates for collection and legal action vary based on the age and amount of the accounts, with different rates for accounts placed with an attorney.

Recovery System for Company Funds

Phase One: Initial Recovery Steps

Within the first 24 hours of initiating Phase One, we spring into action. Our team dispatches the initial demand letter and employs skip-tracing to unearth the most current financial and contact details of the debtor. We’re relentless, with daily attempts to reach a resolution through calls, emails, texts, and faxes.

We aim for a swift resolution, but if our efforts don’t yield results within 30 to 60 days, we’re prepared to escalate to Phase Two.

Our approach is systematic and persistent:

  • Dispatch of the first demand letter via US Mail
  • Comprehensive skip-tracing and investigation
  • Persistent contact attempts by our collectors

Should these steps fail to secure payment, we seamlessly transition to the next phase, ensuring no momentum is lost in the recovery process.

Phase Two: Legal Action and Attorney Involvement

Once we escalate to legal action, the stakes rise. We engage a local attorney within our network, ensuring jurisdictional expertise. The attorney drafts demand letters and attempts to contact the debtor, combining legal pressure with persistent communication.

If these efforts fail, we provide a clear analysis of the situation. You’ll receive a detailed recommendation on whether to proceed with litigation or to close the case.

Should you choose to litigate, be prepared for upfront costs. These typically range from $600 to $700, covering court costs and filing fees. Here’s a breakdown of potential costs and our collection rates:

Claims Quantity Accounts < 1 Year Accounts > 1 Year Accounts < $1000 Attorney Placed Claims
1-9 30% 40% 50% 50%
10+ 27% 35% 40% 50%

Remember, if litigation does not result in recovery, you owe us nothing. We shoulder the risk, aligning our success with your recovery.

Phase Three: Recommendations and Costs

We’ve reached the critical juncture where we must decide our next move. If the odds are against us, we’ll advise shutting the case down, sparing you further costs. However, should litigation seem viable, you’re at a crossroads. Opting out means no fees owed to us or our affiliated attorneys. Alternatively, standard collection efforts can persist.

Choosing to litigate necessitates upfront legal expenses, generally between $600 to $700. These cover court and filing fees, with our attorney championing your cause. Failure to collect post-litigation? You owe us nothing.

Our fee structure is straightforward and competitive. Here’s a quick breakdown:

  • 1-9 claims: 30% for accounts under a year old, 40% for older accounts, and 50% for accounts under $1000 or those requiring legal action.
  • 10+ claims: 27% for newer accounts, 35% for older ones, and 40% for sub-$1000 accounts, with legal action still at 50%.

We’re committed to transparency and efficiency in recovering your funds. Our rates reflect the complexity and age of the claims, ensuring fair compensation for our dedicated efforts.

Frequently Asked Questions

What are the initial recovery steps in Phase One?

The initial recovery steps in Phase One include sending letters to the debtor, skip-tracing and investigation, and attempting to contact the debtor through various methods such as phone calls, emails, and faxes.

What happens if all attempts to resolve the account fail in Phase One?

If all attempts to resolve the account fail in Phase One, the case is forwarded to one of the affiliated attorneys within the debtor’s jurisdiction in Phase Two.

What actions are taken by the attorney in Phase Two?

In Phase Two, the attorney drafts letters to the debtor demanding payment and attempts to contact the debtor via telephone. If all attempts to reach a conclusion fail, a letter is sent to the client explaining the issues surrounding the case and the recommended next steps.

What are the recommendations and costs in Phase Three?

In Phase Three, the recommendations are either closure of the case if recovery is not likely or proceeding with litigation. If the decision is litigation, the client will be required to pay upfront legal costs such as court fees and filing fees, and the rates for collection services are provided based on the number of claims and age of the accounts.

What happens if the client decides not to proceed with legal action in Phase Three?

If the client decides not to proceed with legal action in Phase Three, they have the option to withdraw the claim and owe nothing to the firm or the affiliated attorney. Alternatively, they can allow the firm to continue pursuing the debtors with standard collection activity.

What are the collection rates for accounts under 1 year in age in Phase Three?

For accounts under 1 year in age, the collection rates are 30% of the amount collected for 1-9 claims and 27% of the amount collected for 10 or more claims.


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