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Tackling Overdue Payments in Food and Beverage Exports

In the world of food and beverage exports, dealing with overdue payments can be a challenging aspect of business operations. To address this issue effectively, companies often implement recovery systems and utilize debt collection services. This article focuses on strategies for tackling overdue payments in the food and beverage export industry, with a specific emphasis on recovery systems and debt collection rates.

Key Takeaways

  • Implementing a 3-phase recovery system can help companies recover funds efficiently and effectively.
  • Rates for debt collection vary based on the number of claims and the age of the accounts.
  • Consider the possibility of litigation for cases where recovery through standard collection activities is not feasible.
  • Understand the upfront legal costs involved in pursuing legal action for debt recovery.
  • Tailored collection rates can provide competitive options for companies dealing with overdue payments.

Recovery System for Company Funds

Phase One

Within the first 24 hours of initiating Phase One, we spring into action. Our priority is to establish contact and set the stage for recovery. Here’s what we do:

  • Send the initial demand letter to the debtor via US Mail.
  • Conduct skip-tracing and investigations to secure the most accurate financial and contact information.
  • Engage with the debtor through persistent communication efforts, including phone calls, emails, text messages, and faxes.

We’re relentless in our pursuit, making daily attempts to reach a resolution within the first 30 to 60 days. If these efforts don’t yield results, we’re prepared to escalate to Phase Two, involving our network of affiliated attorneys.

Our approach is designed to maximize the potential for recovery while minimizing the time wasted on overdue payments. The swift and strategic actions we take in Phase One lay the groundwork for a successful collection process.

Phase Two

We’ve escalated the matter to our legal team. Immediate action is taken to assert our position. A series of demand letters are drafted and sent, signaling our intent to recover what’s due. Here’s what unfolds:

  • The attorney drafts a firm demand letter on legal letterhead.
  • Concurrently, calls are made to establish direct contact.
  • Persistence is key; we maintain pressure through continuous communication.

We’re committed to a resolution. If this phase doesn’t yield results, we’re prepared to advise on the next critical steps.

Phase Three

At the culmination of our efforts, we face a decisive moment. We must assess the viability of recovery and choose our next course of action. If the likelihood of recouping funds is slim, we’ll advise case closure, sparing you any further costs. Conversely, should litigation appear promising, a choice presents itself.

Litigation requires an upfront investment for legal expenses, typically between $600 to $700. These fees are necessary for filing a lawsuit to pursue all owed monies. In the event that litigation does not yield results, rest assured, you will not incur additional charges from us.

We stand by our commitment to a transparent and fair recovery process, ensuring you are fully informed at every stage.

Our fee structure is straightforward and hinges on the number of claims and their age. Here’s a quick breakdown:

  • For accounts under 1 year: 30% of the amount collected.
  • Over 1 year: 40% of the collected sum.
  • Accounts under $1000: 50% of the recovery.
  • When an attorney is involved: 50%, regardless of the account’s age or size.

Rates for Debt Collection

Rates for 1 through 9 claims

When we tackle overdue payments, our rates are as straightforward as our approach. For the first nine claims, we’ve set a clear fee structure based on the age and amount of the account. The younger the debt, the lower the fee – a fair deal for all.

For accounts less than a year old, we charge 30% of the amount collected. As debts age, our efforts intensify, and so does the rate: 40% for accounts over a year. And for those particularly small balances under $1000, or when an attorney steps in, the rate is set at 50%.

Here’s a quick breakdown:

  • Accounts under 1 year: 30%
  • Accounts over 1 year: 40%
  • Accounts under $1000: 50%
  • Accounts requiring an attorney: 50%

Remember, our goal is to recover your funds efficiently. These rates are designed to align our interests with yours – the more we recover, the better for both parties. It’s a partnership where we shoulder the risk together, ensuring that our success is tied to your satisfaction.

Rates for 10 or more claims

When we handle a volume of 10 or more claims, we’re able to offer more competitive rates. Bulk submissions translate to reduced costs for you, making the recovery of funds more efficient and economical. Here’s how our rates break down for larger claim batches:

Age of Account Rate of Collection
Under 1 year 27%
Over 1 year 35%
Under $1000 40%
Legal action 50%

Volume is key in debt recovery. The more claims you entrust to us, the more you save. It’s a straightforward approach to a complex problem.

We’re committed to transparency in our pricing. No hidden fees, no surprises. Just clear, scaled rates that reflect the size of your portfolio.

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, contacting debtors, and attempting to resolve the matter. Phase Two includes forwarding the case to affiliated attorneys for legal action. Phase Three involves either closing the case if recovery is unlikely or proceeding with litigation with upfront legal costs.

What are the rates for debt collection for 1 through 9 claims?

For 1 through 9 claims, the rates vary based on the age of the accounts and the amount collected. Accounts under 1 year in age incur a collection rate of 30% or 40%, while accounts over 1 year in age have rates of 40% or 50%. Accounts under $1000.00 and those placed with an attorney have different rates as well.

What are the rates for debt collection for 10 or more claims?

For 10 or more claims, the rates also depend on the age of the accounts and the amount collected. Accounts under 1 year in age have rates of 27% or 35%, while accounts over 1 year in age have rates of 35% or 40%. Accounts under $1000.00 and those placed with an attorney have specific rates as well.

What happens if recovery is unlikely in Phase Three of the Recovery System?

If recovery is unlikely in Phase Three, there are two options. The case may be closed with no obligation for payment to the firm or affiliated attorney. Alternatively, litigation may be recommended, requiring upfront legal costs. If legal action fails, there is no obligation for payment.

What are the upfront legal costs if litigation is recommended in Phase Three?

If litigation is recommended in Phase Three, the upfront legal costs typically range from $600.00 to $700.00, depending on the debtor’s jurisdiction. Payment of these costs allows the affiliated attorney to file a lawsuit on behalf of the client for all monies owed.

How are the collection rates determined for debt collection?

The collection rates for debt collection are determined based on the number of claims submitted within the first week of placing the first account. Rates vary for accounts based on their age, amount collected, and whether they are placed with an attorney.


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