Securing payments on international investment deals is a critical aspect of business operations. With the increasing globalization of markets, companies are engaging in cross-border transactions that require secure and reliable payment systems. In this article, we will explore a three-phase recovery system for company funds, designed to ensure the successful recovery of debts and payments in international investment deals. Understanding and implementing these strategies is essential for businesses operating in the global marketplace.
Key Takeaways
- Implementing a three-phase recovery system enhances the security of company funds in international investment deals.
- The first phase involves initial contact and investigation, followed by the escalation to legal action in subsequent phases if necessary.
- Companies have the option to pursue litigation for debt recovery, with associated legal costs and fees.
- The recovery system offers flexibility in decision-making, allowing companies to choose the best course of action based on the circumstances of the case.
- Competitive collection rates are available for companies submitting multiple claims within the specified timeframes.
Recovery System for Company Funds
Phase One
Within the first 24 hours of initiating Phase One, a multi-pronged approach is deployed to secure company funds. Immediate action is taken to ensure that the debtor is aware of the outstanding obligations. A series of four letters is dispatched via US Mail as a preliminary step.
Skip-tracing and thorough investigations are conducted to gather the most accurate financial and contact information on the debtors. Our team of collectors engages in persistent outreach, utilizing phone calls, emails, text messages, and faxes to negotiate a resolution.
Daily attempts are made to contact the debtors during the critical first 30 to 60 days. In the event that these efforts do not yield a satisfactory resolution, the process seamlessly transitions to Phase Two, involving our network of affiliated attorneys.
The effectiveness of Phase One is contingent upon the following actions:
- Sending the initial series of letters to establish formal communication.
- Conducting investigations to locate and assess debtor assets.
- Engaging in consistent and varied communication attempts to negotiate payment.
Should these measures fail to recover the funds, the case is escalated to ensure that no time is wasted in pursuing the next course of action.
Phase Two
Upon escalation to Phase Two, the case is transferred to a local attorney within our network. Immediate action is taken to draft and send a series of demand letters to the debtor, leveraging the attorney’s legal letterhead for added weight. Concurrently, the attorney’s office initiates direct contact attempts through phone calls.
If these intensified efforts fail to yield a resolution, a strategic assessment is conducted. A detailed report is provided to the client, outlining the challenges encountered and recommendations for proceeding to Phase Three.
The focus of Phase Two is to apply legal pressure and exhaust all pre-litigation avenues to secure payment.
The following table summarizes the attorney’s actions in Phase Two:
| Action Item | Description |
|---|---|
| Letter Drafting | Drafting and sending demand letters on law firm letterhead. |
| Direct Contact | Phone calls to the debtor by the attorney or staff. |
| Strategic Assessment | Evaluation of the case for potential Phase Three actions. |
Clients are kept informed throughout this phase, ensuring transparency and preparedness for any necessary decision-making regarding the next steps.
Phase Three
Upon reaching Phase Three, the decisive moment is at hand. The outcome of our comprehensive investigation into the debtor’s assets and case details will guide our recommendation. Two paths lie ahead: case closure or litigation.
Closure is advised when recovery seems unlikely, incurring no fees. Conversely, choosing litigation necessitates upfront legal costs, typically $600-$700. These cover court costs, filing fees, and related expenses. Should litigation not yield results, no further fees apply.
Our fee structure is clear and competitive, reflecting the complexity and age of the claims:
-
For 1-9 claims:
- Under 1 year: 30%
- Over 1 year: 40%
- Under $1000: 50%
- With attorney: 50%
-
For 10+ claims:
- Under 1 year: 27%
- Over 1 year: 35%
- Under $1000: 40%
- With attorney: 50%
Deciding on litigation is a significant step. We ensure transparency in costs and potential outcomes, empowering clients to make informed decisions.
Frequently Asked Questions
What is the Recovery System for Company Funds?
The Recovery System for Company Funds is a 3-phase process designed to recover company funds from debtors. It involves skip-tracing, investigation, contacting debtors, and, if necessary, legal action.
How long does Phase One last?
Phase One lasts for 30 to 60 days, during which our collector will make daily attempts to contact the debtors and resolve the account. If all attempts fail, the process moves to Phase Two.
What happens in Phase Two?
In Phase Two, the case is forwarded to one of our affiliated attorneys within the debtor’s jurisdiction. The attorney will draft letters, demand payment, and attempt to contact the debtor. If no resolution is reached, the next steps are recommended.
What are the recommendations in Phase Three?
In Phase Three, the recommendation could be to close the case if recovery is not likely. If litigation is recommended, the client has the option to proceed with legal action or continue standard collection activity.
What are the upfront legal costs for litigation?
The upfront legal costs for litigation, such as court costs and filing fees, typically range from $600.00 to $700.00, depending on the debtor’s jurisdiction.
What are the collection rates for DCI?
DCI provides competitive collection rates tailored to the number and age of claims submitted. The rates vary based on the age and amount of the accounts, as well as whether the accounts are placed with an attorney.
