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Chasing Down Payments in Medical Device Exports to Germany

In the realm of medical device exports to Germany, the process of chasing down payments can be intricate and challenging. To streamline this process, a Recovery System for Company Funds and a Debt Collection Process are essential components. Let’s delve into the key takeaways from these two key aspects:

Key Takeaways

  • Implementing a structured Recovery System can expedite the process of recovering company funds.
  • The Debt Collection Process involves initial contact, legal action, and specific collection rates based on different criteria.
  • Efficient communication channels, including phone calls, emails, and faxes, are crucial in resolving payment issues.
  • Consideration of legal action may be necessary for cases where recovery through standard collection activities is unsuccessful.
  • Understanding the collection rates and fees associated with debt recovery is vital for making informed decisions.

Recovery System for Company Funds

Phase One

In the first 24 hours, we hit the ground running. Our team dispatches the initial letter and dives into a comprehensive skip-trace to unearth the most current financial and contact details of the debtors. We’re relentless, employing every communication tool at our disposal—phone, email, text, fax—to engage and negotiate a settlement.

Daily attempts are made to reach a resolution. It’s a rigorous 30 to 60-day sprint of persistent contact, aiming for a swift recovery of your funds.

If our efforts in Phase One don’t yield results, we don’t hesitate. We escalate to Phase Two, engaging our network of attorneys to apply legal pressure within the debtor’s local jurisdiction. It’s a seamless transition, ensuring no momentum is lost.

Our commitment is clear: resolve the matter before legal escalation. Here’s a snapshot of our initial contact strategy:

  • First contact letter sent via US Mail
  • Comprehensive skip-tracing
  • Persistent daily communication attempts

Remember, our goal is to secure your payments swiftly and efficiently, minimizing the need for further action.

Phase Two

As we escalate our efforts, Phase Two kicks in with legal leverage. Our affiliated attorneys, armed with jurisdictional insight, draft demanding letters and make persistent calls. Here’s what unfolds:

  1. Immediate drafting of a demand letter on law firm letterhead.
  2. Relentless attempts to contact the debtor via phone.

If these efforts hit a wall, we’re transparent about it. We’ll send you a detailed letter outlining the hurdles and our advised course of action.

We’re committed to clear communication and strategic escalation to recover what’s rightfully yours.

Should Phase Two not yield the desired results, we’re prepared to advise on the viability of Phase Three. Our goal remains steadfast: to secure your funds with minimal disruption to your business.

Phase Three

At the crossroads of Phase Three, we face a critical decision. If our investigation suggests a low recovery probability, we’ll advise case closure, sparing you any fees. Conversely, should litigation seem viable, you’re at a juncture.

Opting out means no cost; you can withdraw the claim or let us persist with conventional collection efforts. Choosing litigation requires covering initial legal expenses, typically $600-$700. These fees are your gateway to a lawsuit aimed at reclaiming every penny due, including filing costs.

Should litigation not yield results, rest assured, you owe us nothing further.

Our fee structure is straightforward 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%

These rates ensure that our interests are aligned with yours, as we only succeed when you recover your funds.

Debt Collection Process

Initial Contact

We hit the ground running with initial contact. Our team’s approach is direct and unyielding. We reach out through every channel available—phone, email, text, fax—to establish a line of communication. It’s a relentless pursuit to secure a resolution.

  • First, we send a series of letters, escalating in tone.
  • Next, we employ skip-tracing to uncover the best contact and financial information.
  • Daily attempts are made to engage the debtor for the first 30 to 60 days.

Our goal is clear: to bring the debtor to the table and negotiate a settlement. We’re not just chasing payments; we’re after a fair resolution for all parties involved.

If this phase doesn’t yield results, we don’t hesitate to escalate. The case moves swiftly to Phase Two, involving our network of attorneys. Here, the stakes are higher, and the message is firmer. We’re committed to recovering what’s owed to you, and every step is calculated to bring us closer to that end.

Legal Action

When diplomacy fails, we take a firmer stance. Legal action is our last resort, but a necessary step to uphold our clients’ rights. We’re not just chasing payments; we’re asserting your rightful claims.

Litigation is a clear message: we mean business. If you decide to proceed, be prepared for upfront legal costs. These typically range from $600 to $700, depending on the debtor’s jurisdiction. It’s a commitment, but one that can lead to full recovery of funds owed.

We stand by you during this phase, offering guidance and clarity. Our affiliated attorneys will file a lawsuit on your behalf, seeking not just the principal amount but also associated legal costs.

Here’s a snapshot of our collection rates post-litigation:

Claims Submitted Accounts < 1 Year Accounts > 1 Year Accounts < $1000 Attorney Placed
1-9 30% 40% 50% 50%
10+ 27% 35% 40% 50%

Remember, if litigation doesn’t result in payment, you owe us nothing. It’s a no-win, no-fee assurance that aligns our interests with yours.

Collection Rates

When we talk about collection rates, we’re discussing the lifeblood of our recovery efforts. Success hinges on our ability to convert outstanding debts into recovered funds. Our rates are competitive, designed to incentivize swift recovery while aligning with your financial interests.

We’ve structured our rates to be as fair as possible, ensuring that you keep a significant portion of the recovered amount.

Here’s a quick breakdown of our standard rates:

  • For 1-9 claims, accounts under 1 year: 30% of the amount collected.
  • For accounts over 1 year: 40%.
  • For amounts under $1000: 50%.
  • If placed with an attorney: 50%, regardless of age or amount.

For 10 or more claims:

  • Accounts under 1 year: 27%.
  • Over 1 year: 35%.
  • Under $1000: 40%.
  • With an attorney: 50%.

These rates ensure that we are fully invested in each case, pushing for the maximum recovery while providing you with the majority share of the recouped funds.

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 contacting debtors for resolution. Phase Two includes forwarding the case to affiliated attorneys for legal action. Phase Three involves assessing the possibility of recovery and recommending closure or litigation.

What happens in Phase One of the Recovery System?

In Phase One, letters are sent to debtors, skip-tracing is conducted, and debtors are contacted for resolution. If unsuccessful, the case proceeds to Phase Two for legal action.

What is the process in Phase Two of the Recovery System?

In Phase Two, the case is forwarded to affiliated attorneys who draft letters to debtors and attempt to contact them. If unresolved, recommendations for closure or litigation are made.

What are the options in Phase Three of the Recovery System?

In Phase Three, the options include closing the case if recovery is unlikely or proceeding with litigation. Legal action requires upfront costs for filing fees and court expenses.

What are the collection rates for debt recovery services?

The collection rates 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 circumstances.

What happens if litigation fails in debt collection?

If attempts to collect via litigation fail, the case will be closed, and there will be no additional costs owed to the firm or affiliated attorney.


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