Overdue payments in food and beverage exports to Switzerland can pose significant challenges for companies. In this article, we will explore a Recovery System for Company Funds and provide recommendations for dealing with overdue payments.
Key Takeaways
- Implement a 3-phase Recovery System for Company Funds to efficiently recover overdue payments.
- Consider closure of the case if recovery is unlikely after thorough investigation of debtor’s assets.
- Evaluate the option of litigation for overdue payments and be prepared to cover legal action costs if necessary.
- Understand the payment structure for legal costs and collection rates based on the age and amount of the accounts.
- Engage in proactive communication and follow-up strategies with debtors to expedite the resolution process.
Recovery System for Company Funds
Phase One
Within the first 24 hours of initiating Phase One, we spring into action. Our team dispatches the initial demand letter and employs advanced skip-tracing to unearth the most current financial and contact details of the debtors. We’re relentless, with daily attempts to reach a resolution through calls, emails, texts, and faxes.
- First demand letter sent via mail
- Comprehensive skip-tracing conducted
- Persistent contact attempts for 30-60 days
If these efforts don’t yield results, we don’t hesitate to escalate to Phase Two, involving our network of skilled attorneys. Persistence is key, and we’re committed to moving swiftly to recover what’s owed to you.
We understand the urgency of recovering overdue payments and ensure that every step taken is aimed at achieving a resolution as quickly as possible.
Phase Two
Once we escalate the case to our affiliated attorney, the pressure intensifies. The attorney drafts a series of stern letters, each echoing the urgency of payment. Concurrently, persistent phone calls aim to shake loose a resolution. Despite these efforts, some debtors remain unyielding. In such cases, we’re faced with a critical juncture: to press on or to reassess our strategy.
- The attorney sends the first demand letter.
- Follow-up calls are made to reinforce the message.
- We evaluate the debtor’s response and willingness to pay.
Should our attempts hit a wall, we prepare for the possibility of closure. Yet, we remain hopeful that the debtor will recognize the gravity of the situation and settle their dues. If not, we stand ready to advise on the merits of proceeding to Phase Three.
Phase Three
At the culmination of our recovery efforts, we face a critical juncture. We must assess the viability of recovery and decide on the most prudent course of action. If our investigation suggests that the likelihood of recovery is minimal, we’ll advise on the closure of the case, incurring no additional costs to you.
Should litigation appear to be a viable option, the decision rests with you. Opting out means no further obligations, while proceeding requires an upfront investment in legal fees. These fees, typically between $600 to $700, are necessary for filing a lawsuit and cover court-related expenses.
Our commitment is to transparency and efficiency in this final phase, ensuring that you are well-informed and prepared for whatever decision you make.
Our fee structure is straightforward and competitive, reflecting the number of claims and their age:
-
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%
These rates are designed to align our interests with yours, as we only succeed when you do.
Recommendations for Overdue Payments
Closure of the Case
When we reach the juncture of case closure, our collective journey through the recovery process has hit a critical decision point. We must assess the viability of further action. If the likelihood of fund recovery is slim, we advise to close the case, absolving you of any financial obligation to us or our affiliated attorneys.
In instances where closure is the chosen path, we pivot to alternative strategies. We may continue standard collection activities, such as:
- Persistent calls
- Targeted emails
- Strategic faxes
These efforts are aimed at maintaining pressure on the debtor, without incurring additional costs to you.
Our fee structure is transparent and contingent on successful collection. For instance, accounts under one year of age are subject to a 30% fee on the amount collected, while older accounts or those under $1000 incur higher rates. Should litigation be deemed necessary, and you decide to proceed, upfront legal costs will apply. These are typically in the $600-$700 range, depending on the debtor’s location.
Litigation Decision
When we reach the crossroads of litigation, we must weigh our options carefully. The choice to litigate is not one to take lightly; it involves strategic considerations and a clear understanding of the potential outcomes.
We stand at a decision point: to litigate or not. This choice will shape our path forward and determine the resources we commit.
If we opt against litigation, we can withdraw the claim at no cost, or continue pursuit through standard collection activities. Should we choose to litigate, we face upfront legal costs, which typically range from $600 to $700. These costs cover court fees and filing expenses, initiating the legal process to recover the funds owed.
Here’s a quick breakdown of potential costs:
| Action | Estimated Cost |
|---|---|
| Court Costs | $600 – $700 |
| Filing Fees | Included in court costs |
Remember, if litigation does not result in recovery, the case closes, and we owe nothing further. Our commitment is to a cost-effective and judicious approach to overdue payments.
Legal Action Costs
When we decide to take legal action, costs are inevitable. We must be prepared to invest in our case to ensure a fair chance at recovering our dues. These upfront costs cover court fees, filing charges, and other legal expenses. Typically, these range from $600 to $700, depending on the jurisdiction of the debtor.
| Expense Type | Estimated Cost |
|---|---|
| Court Fees | $300 – $400 |
| Filing Charges | $200 – $300 |
| Miscellaneous | $100 |
We operate on a no-recovery, no-fee basis. If litigation does not result in collection, you owe us nothing. It’s a risk we share, and a commitment to our partnership.
Our fee structure is clear and competitive. We charge based on the age and amount of the claim, ensuring fairness and transparency.
Remember, investing in legal action is not just about the immediate case. It’s about setting a precedent for future transactions, demonstrating that we are serious about protecting our interests.
Frequently Asked Questions
What is the Recovery System for Company Funds?
The Recovery System for Company Funds consists of three phases: Phase One involves sending letters to debtors, skip-tracing, and attempting to contact debtors. Phase Two includes forwarding the case to a local attorney for further action. Phase Three includes recommendations for closure of the case or proceeding with legal action.
What happens if the possibility of recovery is not likely in Phase Three?
If the possibility of recovery is not likely in Phase Three, the recommendation may be to close the case, and you will owe nothing to the firm or affiliated attorney. Alternatively, if litigation is recommended, you can choose to proceed with legal action or withdraw the claim.
What are the upfront legal costs if legal action is recommended in Phase Three?
If legal action is recommended in Phase Three, you will be required to pay upfront legal costs such as court costs and filing fees, which typically range from $600.00 to $700.00 depending on the debtor’s jurisdiction.
What are the collection rates for DCI based on the number of claims submitted?
DCI provides competitive collection rates based on the number of claims submitted. Rates vary for accounts under 1 year in age, accounts over 1 year in age, accounts under $1000.00, and accounts placed with an attorney.
What actions are taken in Phase One of the Recovery System?
In Phase One, letters are sent to debtors, skip-tracing and investigations are conducted, and attempts are made to contact debtors via various methods such as phone calls, emails, and faxes. If all attempts fail, the case proceeds to Phase Two.
What occurs in Phase Two of the Recovery System?
In Phase Two, the case is forwarded to a local attorney within the network. The attorney drafts letters demanding payment, contacts the debtor, and if no resolution is reached, recommendations are made for the final steps.
