Call 855-930-4343 Today!

Navigating Non-Payment Issues in Cross-Border Technology Trade

Navigating non-payment issues in cross-border technology trade can be a complex and challenging process. Companies involved in cross-border transactions often face difficulties in recovering funds from debtors located in different jurisdictions. In this article, we will explore a three-phase Recovery System designed to assist companies in recovering company funds effectively and efficiently in cross-border technology trade scenarios.

Key Takeaways

  • Understand the three-phase Recovery System for recovering company funds in cross-border technology trade.
  • Phase One involves initial contact with debtors and skip-tracing to gather financial information.
  • Phase Two includes forwarding the case to affiliated attorneys for legal action if initial attempts fail.
  • Phase Three provides options for closure or litigation based on the investigation results.
  • Be aware of the costs involved in legal action and the collection rates for recovery services.

Recovery System for Company Funds

Phase One

Upon initiating Phase One, swift action is taken to signal the seriousness of the non-payment issue. Within 24 hours of account placement, a multi-channel approach is deployed:

  • A series of four letters is dispatched via US Mail to the debtor.
  • Comprehensive skip-tracing and investigation are conducted to secure optimal financial and contact data.
  • Persistent contact efforts commence, utilizing phone calls, emails, text messages, and faxes.

Daily attempts to engage the debtor span the initial 30 to 60 days, aiming for an expedient resolution. Should these efforts not yield results, the transition to Phase Two is immediate, involving our network of affiliated attorneys in the debtor’s locale.

The urgency of response in Phase One sets the tone for the recovery process, establishing a foundation for subsequent actions.

Phase Two

Upon escalation to Phase Two, the case is transferred to a local attorney within our network. Immediate action is taken to assert the seriousness of the situation to the debtor. A series of demand letters are dispatched, and persistent contact attempts are made via telephone. This phase is critical in demonstrating the resolve to recover the owed funds.

The attorney’s involvement adds legal weight, signaling to the debtor the intensification of the recovery process.

If these efforts do not yield a resolution, a strategic decision is required. The next steps hinge on the debtor’s response and the viability of further action. The table below outlines the potential outcomes and recommendations:

Attempt Outcome Recommendation
Letters & Calls No Resolution Proceed to Phase Three
Legal Notice Debtor Unresponsive Evaluate Litigation Prospects

The path chosen will significantly impact the company’s approach to the non-payment issue and the potential for fund recovery.

Phase Three

Upon reaching Phase Three, the path forward hinges on the feasibility of fund recovery. If prospects are dim, we advise case closure, sparing you further costs. Conversely, opting for litigation necessitates upfront legal fees, typically between $600 to $700. These cover court costs and filing fees, with our affiliated attorney initiating the lawsuit on your behalf.

Should litigation prove unsuccessful, rest assured, no additional fees will be levied by our firm or the attorney.

Our fee structure is straightforward and competitive, with rates varying based on claim age, amount, and volume. For instance, accounts under a year old are charged at 30% of the collected amount for 1-9 claims, and 27% for 10 or more. The rate increases for older accounts and smaller sums.

Here’s a quick breakdown of our rates:

  • Accounts under 1 year (1-9 claims): 30%

  • Accounts over 1 year (1-9 claims): 40%

  • Accounts under $1000.00 (1-9 claims): 50%

  • Accounts placed with an attorney (1-9 claims): 50%

  • Accounts under 1 year (10+ claims): 27%

  • Accounts over 1 year (10+ claims): 35%

  • Accounts under $1000.00 (10+ claims): 40%

  • Accounts placed with an attorney (10+ claims): 50%

In the event of non-litigation, you retain the option to withdraw the claim or continue pursuit through standard collection activities, such as calls and emails, at no extra cost. The decision is yours, and our role is to provide the necessary guidance and services to navigate these complex scenarios.

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 for resolution. 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 after upfront legal costs are paid.

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 there will be no fees owed to the firm or affiliated attorney. Alternatively, litigation may be recommended, and the client can choose to proceed with legal action by paying upfront legal costs.

What are the rates for the Recovery System?

The rates for the Recovery System vary based on the number of claims submitted and the age of the accounts. Rates range from 27% to 50% of the amount collected, depending on the specific circumstances of the accounts.

What actions are taken in Phase One of the Recovery System?

In Phase One, letters are sent to debtors, skip-tracing is conducted, and attempts are made to contact debtors for resolution. Daily attempts to contact debtors are made for the first 30 to 60 days. If unsuccessful, the case progresses to Phase Two.

What happens in Phase Two of the Recovery System?

In Phase Two, the case is forwarded to an affiliated attorney who will draft letters demanding payment from the debtor. The attorney will also attempt to contact the debtor by phone. If all attempts fail, the client will be informed of the situation and the recommended next steps.

What are the options if legal action is recommended in Phase Three?

If legal action is recommended in Phase Three, the client can choose to proceed by paying upfront legal costs or withdraw the claim with no fees owed. If litigation fails, there will be no fees owed to the firm or affiliated attorney.


More Posts

Recovering Payments for Fashion Goods Exported to France

Exporting fashion goods to France can be a lucrative venture, but it also comes with the risk of non-payment. Recovering payments for these goods requires a structured approach, and understanding the process is crucial for success. The recovery system typically involves three phases, each with specific actions aimed at recovering

Handling Unpaid Invoices in USA-France Wine and Spirits Trade

The global wine and spirits industry frequently encounters financial disputes, and the trade between the USA and France is no exception. Handling unpaid invoices in this sector requires a nuanced understanding of international law, effective preventive measures, and a strategic approach to debt recovery. This article explores the multifaceted process

Collecting Overdue Payments in Aerospace Component Exports

The aerospace industry often deals with complex transactions, and overdue payments on exported components can significantly impact cash flow and operations. To address this, a structured approach to debt recovery is essential. The three-phase recovery system provides a clear pathway for collecting overdue payments, from initial contact to potential litigation.

Tackling Non-Payment in Agricultural Product Trade with France

The trade of agricultural products with France comes with the inherent risk of non-payment, which can significantly impact exporters financially and legally. Understanding these risks and the available measures to mitigate them is crucial for maintaining a healthy trade relationship and protecting one’s business interests. This article explores a three-phase