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Ensuring Timely Payment for Chemical Exports to Japan

When exporting chemical products to Japan, ensuring timely payment is crucial for the financial health of your company. In this article, we will discuss a Recovery System for Company Funds specifically tailored for chemical exports to Japan. The system consists of three phases aimed at recovering funds owed to your company efficiently and effectively.

Key Takeaways

  • Implementing a Recovery System for Company Funds is essential for timely payment of chemical exports to Japan.
  • Phase One involves sending letters to debtors, skip-tracing, and contacting debtors for resolution within 24 hours of placing an account.
  • Phase Two includes forwarding cases to affiliated attorneys for legal action if initial attempts at resolution fail.
  • Phase Three offers recommendations for closure of the case or proceeding with litigation, with associated costs and collection rates.
  • DCI provides competitive collection rates based on the number of claims submitted and the age and amount of the accounts.

Recovery System for Company Funds

Phase One

Within the first 24 hours of initiating Phase One, a multi-channel approach is deployed to engage the debtor. Immediate action is taken to send out the initial demand letter, and comprehensive skip-tracing is conducted to ensure accurate debtor information. Our team’s persistent efforts include daily phone calls, emails, text messages, and faxes, aiming for a swift resolution.

The goal is clear: establish contact and secure payment, leveraging every tool at our disposal.

If these efforts do not yield results within the first 30 to 60 days, the process seamlessly transitions to Phase Two. This phase involves escalating the matter to our network of affiliated attorneys, who are strategically located within the debtor’s jurisdiction for enhanced impact.

The effectiveness of Phase One is reflected in our structured approach:

  • Initial demand letter sent via US Mail
  • Comprehensive skip-tracing for accurate debtor profiles
  • Persistent contact attempts through various communication channels

Our commitment to timely payment is unwavering, and Phase One lays the groundwork for a robust recovery system.

Phase Two

Upon escalation to Phase Two, the case is transferred to a local attorney within our network. This marks a critical shift in the recovery process. The attorney takes immediate action:

  • Drafting and dispatching a series of demand letters on law firm letterhead.
  • Initiating persistent telephone contact to negotiate payment.

Should these efforts not yield the desired outcome, a detailed report is prepared for the client. This report outlines the challenges encountered and provides a clear recommendation for moving forward.

The transition to legal representation signifies a heightened level of seriousness in the recovery efforts, potentially influencing the debtor’s willingness to settle the debt.

If the case remains unresolved, we proceed to the decisive Phase Three, where the possibility of litigation is evaluated.

Phase Three

Upon reaching Phase Three, the path forward becomes clear. If the debtor’s assets and the case facts suggest a low recovery likelihood, we advise case closure—no fees incurred. Conversely, should litigation be the recommended route, a decision point arises.

Litigation entails upfront costs, typically $600-$700, covering court and filing fees. These costs initiate legal proceedings to reclaim the full debt amount. Failure to recover funds through litigation leads to case closure, again with no charges from our firm or affiliated attorney.

Our competitive rates are structured as follows:

  • For 1-9 claims:

    • Accounts under 1 year: 30%
    • Accounts over 1 year: 40%
    • Accounts under $1000: 50%
    • Accounts with attorney: 50%
  • For 10+ claims:

    • Accounts under 1 year: 27%
    • Accounts over 1 year: 35%
    • Accounts under $1000: 40%
    • Accounts with attorney: 50%

In the event of non-litigation, clients may opt for standard collection activities or withdraw the claim entirely, free of any financial obligation to our firm.

Recovery System for Company Funds

What is Phase One of the Recovery System for Company Funds?

Phase One involves sending letters to debtors, skip-tracing, contacting debtors, and attempting to resolve the matter within the first 30 to 60 days.

What happens if all attempts to resolve the account fail in Phase One?

If all attempts fail in Phase One, the case is forwarded to one of the affiliated attorneys within the debtor’s jurisdiction in Phase Two.

What is Phase Two of the Recovery System for Company Funds?

Phase Two involves the local attorney drafting letters to the debtor, demanding payment, and contacting the debtor via telephone.

What are the options in Phase Three of the Recovery System for Company Funds?

In Phase Three, the options include closure of the case if recovery is not likely or proceeding with legal action which requires upfront legal costs.

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

The upfront legal costs range from $600.00 to $700.00 depending on the debtor’s jurisdiction.

What are the collection rates for DCI based on the number of claims submitted?

The collection rates vary depending on the number of claims submitted, with rates ranging from 27% to 50% of the amount collected.


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