Handling unpaid invoices in the USA-Singapore biotech trade can be a complex and challenging process. In this article, we will explore a three-phase recovery system for company funds, focusing on initial recovery processes, legal action, and attorney involvement, as well as recommendations and costs. It is essential for biotech companies engaged in trade between the USA and Singapore to understand the intricacies of recovering unpaid invoices to protect their financial interests.
Key Takeaways
- Phase One involves initial recovery processes such as sending letters to debtors, skip-tracing, and daily attempts to contact debtors.
- Phase Two includes legal action and attorney involvement, with the drafting of demand letters and continued attempts to contact debtors.
- Phase Three offers two recommendations: closure of the case if recovery is unlikely or litigation with associated costs, including upfront legal fees and collection rates based on the age and amount of the accounts.
- If the decision is made to proceed with legal action, upfront legal costs such as court fees may range from $600.00 to $700.00, and collection rates vary based on the number and age of claims.
- DCI provides competitive collection rates tailored to the number of claims submitted, with rates ranging from 27% to 50% depending on the age and amount of the accounts.
Recovery System for Company Funds
Phase One: Initial Recovery Process
Upon initiating Phase One, swift action is taken to recover unpaid invoices. Within 24 hours, a series of four letters begins its journey to the debtor, utilizing US Mail as the primary delivery method. The debtor’s information undergoes a thorough skip-tracing and investigation to ensure the best financial and contact details are on hand.
Our collector’s dedication is evident as they engage in daily attempts to reach a resolution through various communication channels, including phone calls, emails, text messages, and faxes. This intensive contact strategy persists for the first 30 to 60 days.
If these persistent efforts do not yield a resolution, the process seamlessly transitions to Phase Two, involving legal action and attorney involvement. The focus remains on recovery, with the ultimate goal of securing the company’s funds without delay.
Phase Two: Legal Action and Attorney Involvement
When initial recovery efforts fail, the case escalates to legal action. An attorney within the debtor’s jurisdiction is engaged to exert legal pressure. The attorney’s first step is to send a series of demand letters on law firm letterhead. Concurrently, attempts to contact the debtor via phone intensify.
If these measures do not yield results, a detailed analysis of the debtor’s financial status and the case’s merits is conducted. This assessment informs whether to proceed with litigation or to recommend case closure.
Litigation is a serious step, involving upfront costs for court and filing fees. These typically range from $600 to $700, depending on the jurisdiction.
Should litigation commence, the attorney files a lawsuit to recover all monies owed, including legal costs. If litigation does not result in recovery, no further fees are owed to the firm or attorney.
The following table outlines the collection rates based on the number of claims and other factors:
| Claims Submitted | Accounts < 1 Year | Accounts > 1 Year | Accounts < $1000 | Attorney-Placed Accounts |
|---|---|---|---|---|
| 1-9 | 30% | 40% | 50% | 50% |
| 10+ | 27% | 35% | 40% | 50% |
Phase Three: Recommendations and Costs
Upon evaluating the debtor’s assets and the facts of the case, our firm will present a clear path forward. If prospects of recovery are dim, we advise case closure—at no cost to you. Conversely, should litigation be the chosen route, a decision point arises.
Opting out of legal action allows for withdrawal of the claim without fees. Alternatively, standard collection efforts can persist. However, choosing litigation necessitates upfront legal costs, typically $600-$700, subject to the debtor’s jurisdiction. These cover court and filing fees, with our attorney initiating the lawsuit for the full amount owed.
Should litigation not yield results, the case concludes without further financial obligation to our firm or attorney.
Our fee structure is competitive and varies with claim volume and age. For instance, accounts under a year old are charged at 30% for 1-9 claims, reducing to 27% for 10 or more. Older accounts and those under $1000 incur higher rates, while attorney-placed accounts are uniformly charged at 50% of the amount collected.
Here’s a quick reference for our rates based on the number of claims:
| Claims Submitted | Accounts < 1 Year | Accounts > 1 Year | Accounts < $1000 | Attorney-Placed |
|---|---|---|---|---|
| 1-9 | 30% | 40% | 50% | 50% |
| 10+ | 27% | 35% | 40% | 50% |
The decision to pursue legal action or not is significant. Weigh the potential recovery against the costs and risks involved. Our team is here to guide you through each phase, ensuring informed choices are made at every juncture.
Frequently Asked Questions
What is the recovery system for company funds?
The recovery system for company funds consists of three phases: Initial Recovery Process, Legal Action and Attorney Involvement, and Recommendations and Costs.
What happens in Phase One of the recovery process?
In Phase One, the debtor is sent four letters via US Mail, skip-tracing and investigation of the debtors is conducted, and attempts are made to contact the debtor to resolve the matter using various communication methods.
What occurs in Phase Two of the recovery process?
In Phase Two, the case is forwarded to an affiliated attorney within the debtor’s jurisdiction, who will draft letters demanding payment and attempt to contact the debtor via telephone. If all attempts fail, a recommendation for the next step will be provided.
What are the recommendations and costs in Phase Three?
In Phase Three, two recommendations are provided: closure of the case if recovery is unlikely, or litigation. If litigation is recommended and pursued, upfront legal costs such as court costs and filing fees will be required. Rates for collection activities are also provided based on the number and age of accounts.
What are the upfront legal costs in litigation?
The upfront legal costs in litigation typically range from $600.00 to $700.00, depending on the debtor’s jurisdiction. These costs cover court costs, filing fees, and other expenses related to filing a lawsuit.
What are the collection rates for accounts under the recovery system?
The collection rates for accounts depend on the number of claims submitted and the age of the accounts. Rates range from 27% to 50% of the amount collected, with variations based on the age and placement of the accounts.
