Late payments in machinery exports to Mexico can be a significant challenge for companies. Establishing an effective recovery system for company funds is crucial to mitigate financial losses and ensure business continuity. This article explores a 3-phase Recovery System designed to recover company funds in the face of late payments in machinery exports to Mexico.
Key Takeaways
- Establishing a 3-phase Recovery System is essential for recovering company funds in machinery exports to Mexico.
- Phase One involves sending letters to debtors, skip-tracing, and contacting debtors to resolve the matter.
- Phase Two includes forwarding the case to affiliated attorneys and demanding payment from debtors.
- Phase Three offers options for closure or litigation, with associated costs and recovery rates.
- Rates for recovery services vary based on the number of claims and the age of the accounts.
Recovery System for Company Funds
Phase One
We hit the ground running within 24 hours of receiving an account. Immediate action is our mantra. Our team dispatches the first of four letters to the debtor, ensuring they know we mean business. We don’t just rely on snail mail; we dive deep with skip-tracing to unearth the most current financial and contact details.
Persistence is key. Our collectors are on the phones, sending emails, and firing off texts and faxes. We’re talking daily attempts to reach a resolution. The first 30 to 60 days are crucial, and we’re relentless. If our efforts don’t yield results, we’re not deterred. We seamlessly transition to Phase Two, escalating the case to our network of skilled attorneys.
Our goal is clear: resolve the matter swiftly and efficiently. If resolution evades us in this phase, we’re prepared to take the necessary steps to protect your interests.
Here’s a snapshot of our initial efforts:
- First contact letter sent via US Mail
- Comprehensive skip-tracing conducted
- Daily communication attempts for 30-60 days
If Phase One doesn’t bring the debtor to the table, we’re already setting the stage for the next level of action.
Phase Two
Once we escalate the case to our affiliated attorney, we’re stepping up the pressure. The attorney’s law firm letterhead adds a layer of seriousness that can prompt a debtor to settle. Here’s what we do:
- Draft and send a series of demand letters to the debtor.
- Initiate persistent phone calls to negotiate payment.
If these intensified efforts don’t yield results, we’re transparent about it. We’ll send you a detailed update, laying out the challenges and our proposed course of action.
We’re committed to clear communication. If Phase Two doesn’t lead to recovery, we’ll guide you through the options for Phase Three, ensuring you’re informed every step of the way.
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, at no cost to you. Conversely, should litigation seem viable, the choice is yours.
Opting out means no fees owed, with the option to continue standard collection efforts. Choosing litigation requires covering upfront legal costs, typically between $600 to $700. These fees are necessary for our affiliated attorney to initiate legal proceedings on your behalf, aiming to recover all dues, including filing costs.
Should litigation not yield results, rest assured, you owe us nothing further. Our commitment is to a risk-free resolution for your company.
Our fee structure is straightforward and competitive, reflecting the number of claims and their age. Here’s a quick breakdown:
- 1-9 Claims: Accounts under 1 year, 30%; over 1 year, 40%; under $1000, 50%; with attorney, 50%.
- 10+ Claims: Accounts under 1 year, 27%; over 1 year, 35%; under $1000, 40%; with attorney, 50%.
In every scenario, we strive for the most favorable outcome for your machinery exports to Mexico, ensuring that your financial interests are adequately protected.
Frequently Asked Questions
What is the Recovery System for Company Funds?
The Recovery System for Company Funds consists of three phases: Phase One, Phase Two, and Phase Three. In Phase One, letters are sent to the debtor, skip-tracing and investigation are conducted, and attempts to contact the debtor are made. Phase Two involves forwarding the case to an affiliated attorney for further action. Phase Three includes recommendations for either closing the case or proceeding with litigation.
What happens if recovery is not likely in Phase Three?
If recovery is not likely in Phase Three, the case may be recommended for closure, and no fees will be owed to the firm or affiliated attorney. Alternatively, litigation may be recommended, and the client will have the option to proceed with legal action, bearing upfront legal costs, or withdraw the claim without owing any fees.
What are the costs associated with legal action in Phase Three?
The costs of legal action in Phase Three include upfront legal fees such as court costs and filing fees, typically ranging from $600.00 to $700.00 depending on the debtor’s jurisdiction. If litigation fails, no fees will be owed to the firm or affiliated attorney.
What are the collection rates offered by DCI in the Recovery System?
DCI provides competitive collection rates tailored to the number of claims submitted. Rates vary based on the age of the accounts and whether they are placed with an attorney, ranging from 27% to 50% of the amount collected.
What actions are taken in Phase One of the Recovery System?
In Phase One, letters are sent to the debtor, skip-tracing and investigation are conducted to obtain debtor information, and attempts to contact the debtor are made using various communication methods such as phone calls, emails, and faxes.
What happens if Phase Two actions fail to resolve the account?
If Phase Two actions fail to resolve the account, the case will be further escalated to Phase Three, where recommendations for closure or litigation will be made based on the circumstances.
