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Managing Non-Payment in USA-Thailand Industrial Equipment Trade

Managing non-payment in USA-Thailand industrial equipment trade can be a challenging task that requires a strategic approach. In this article, we will discuss the recovery system for company funds and the rates for debt collection services in this specific trade scenario.

Key Takeaways

  • Implement a 3-phase recovery system for company funds to maximize the chances of successful debt collection.
  • Consider the two possible recommendations in Phase Three: closure of the case if recovery is unlikely or proceeding with litigation with upfront legal costs.
  • Understand the rates for debt collection services, including the percentage of amount collected based on the age and value of accounts submitted.
  • For 10 or more claims, lower collection rates are offered compared to 1 through 9 claims, incentivizing bulk submissions.
  • Utilize skip-tracing, investigations, and various communication methods in Phase One to establish contact with debtors and resolve accounts before escalating to legal action.

Recovery System for Company Funds

Phase One

The initiation of the recovery process is critical for reclaiming unpaid debts in the US-Thai industrial equipment trade. Within the first 24 hours of account placement, a multi-channel approach is deployed:

  • A series of four letters is dispatched to the debtor.
  • Comprehensive skip-tracing and investigation are conducted to secure optimal financial and contact data.
  • Persistent contact attempts are made by our collectors through phone, email, text, and fax.

This aggressive contact strategy ensures that debtors are aware of their obligations and the seriousness of their situation. If these efforts do not yield a resolution, the case escalates to Phase Two, involving legal avenues and potential litigation.

The goal is to establish a clear line of communication and to negotiate a settlement swiftly, minimizing the need for further legal action.

It’s essential to understand that this phase is designed to maximize recovery while minimizing costs. The efficiency of Phase One can significantly influence the overall success of the debt recovery process.

Phase Two

Upon escalation to Phase Two, the case is transferred to a local attorney within our network. This move signifies a shift in strategy, from internal collection efforts to legal enforcement. The attorney will take immediate action, drafting a series of demand letters to the debtor and initiating phone contact. Despite these intensified efforts, some cases remain unresolved. If this occurs, a strategic decision is required.

  • The attorney will continue to attempt resolution through calls and letters.
  • If unsuccessful, a recommendation is made: either to close the case or to proceed with litigation.

The choice is yours: withdraw the claim at no cost, or brace for the legal route with upfront fees. Remember, litigation involves additional costs, typically ranging from $600 to $700.

The path chosen here will set the stage for the final phase, where the outcome of these efforts will be determined.

Phase Three

At the crossroads of Phase Three, the path forward is clear-cut. The decision hinges on the viability of recovery. If prospects are dim, we advise case closure, absolving you of any financial obligation to our firm or our affiliated attorney. Conversely, should litigation be the recommended route, a choice presents itself.

  • If litigation is declined, you may opt for claim withdrawal or continued standard collection efforts, incurring no fees.
  • Choosing litigation necessitates covering initial legal expenses, typically between $600 to $700.

The commitment to litigation is a leap of faith in the pursuit of owed funds, with the understanding that unsuccessful attempts will not burden you with additional costs.

Our recovery system ensures transparency and financial prudence, regardless of the chosen path. The table below outlines the potential upfront costs associated with litigation:

Legal Action Upfront Costs
Court Costs $600 – $700

Remember, the goal is to secure your company’s financial interests with minimal risk.

Rates for Debt Collection Services

Rates for 1 through 9 Claims

When dealing with unpaid invoices for industrial equipment between the USA and Thailand, the rates for debt collection services are critical to understand. For entities submitting between 1 and 9 claims, the cost structure is straightforward and incentivizes swift recovery of funds.

  • Accounts under 1 year in age: 30% of the amount collected.
  • Accounts over 1 year in age: 40% of the amount collected.
  • Accounts under $1000.00: 50% of the amount collected.
  • Accounts placed with an attorney: 50% of the amount collected.

These rates are designed to align the interests of the debt collection agency with those of the creditor. A higher percentage for older or smaller debts reflects the increased difficulty in recovery.

It’s essential to consider these rates as part of the broader strategy for managing non-payment issues in the US-Thai industrial equipment trade sector.

Rates for 10 or More Claims

When dealing with a higher volume of claims, the rates for debt collection services become more favorable. Bulk submissions can lead to significant savings, with rates adjusted to reflect the increased workload. For accounts that are less than a year old, the rate is reduced to 27% of the amount collected. Older accounts, over a year, are charged at 35%. Smaller debts, those under $1000.00, have a rate of 40%. The rate for accounts requiring legal action remains constant at 50%.

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

The economies of scale apply here, incentivizing the submission of multiple claims. This tiered pricing structure is designed to accommodate the varying complexities and ages of debts, ensuring a tailored approach to each case.

It’s essential to understand that these rates are part of a comprehensive three-phase recovery system. Each phase, from initial contact to potential legal intervention, is crafted to maximize recovery chances while aligning costs with the number of claims.

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 an affiliated attorney for legal action. Phase Three offers recommendations based on the investigation results, with options for closure or litigation.

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

For 1 through 9 claims, the rates vary based on the age of the accounts and the amount collected. Rates range from 30% to 50% of the collected amount, depending on the specific details of the accounts.

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

For 10 or more claims, the rates also depend on the age of the accounts and the amount collected. Rates range from 27% to 50% of the collected amount, with specific percentages based on account details.

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 case may be recommended for closure, and no fees will be owed to the firm or affiliated attorney. Alternatively, if litigation is recommended, the client can choose to proceed with legal action and cover upfront legal costs.

What are the upfront legal costs for proceeding with legal action in Phase Three?

The upfront legal costs for proceeding with legal action in Phase Three typically range from $600.00 to $700.00, depending on the debtor’s jurisdiction. These costs cover court fees, filing fees, and other expenses related to filing a lawsuit.

How are the collection rates determined for debt collection services?

The collection rates for debt collection services are tailored and competitive. Rates are based on the number of claims submitted within the first week of placing the first account, with different percentages applied based on account age, amount, and involvement of an attorney.


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