Late payments can be a common challenge in the biotech industry trade with Taiwan. Establishing an effective recovery system for late payments is crucial to ensure the financial stability of companies. In this article, we will explore the Recovery System for Late Payments in the biotech industry trade with Taiwan, focusing on the Initial Recovery Phase, Legal Action Phase, and Payment Rates and Terms.
Key Takeaways
- Establishing a thorough investigation process is essential before determining the recovery likelihood.
- Consider the option of litigation carefully, weighing the costs and potential outcomes.
- Understanding the upfront legal costs involved in proceeding with legal action is important for decision-making.
- DCI provides competitive collection rates tailored to the number and age of claims submitted.
- Regular communication and follow-up with debtors are key strategies in the recovery process.
Recovery System for Late Payments
Initial Recovery Phase
Once we’ve identified a late payment, we spring into action. Within 24 hours, our team initiates the first phase of recovery. We dispatch a series of communications—letters, calls, emails, and even text messages—to engage with the debtor. Our goal is to secure a resolution swiftly and amicably.
- The first of four letters is sent via US Mail.
- We conduct skip-tracing to gather the best financial and contact information.
- Daily attempts are made to reach a settlement within the first 30 to 60 days.
If these efforts don’t yield results, we don’t hesitate to escalate. We’re prepared to move to the next phase, ensuring that every avenue is explored before considering legal action. Our approach is systematic, persistent, and designed to protect your interests at every turn.
Legal Action Phase
When we’ve exhausted all initial recovery efforts, we face a critical juncture. Deciding whether to litigate is a significant step. If the facts and debtor’s assets suggest a slim chance of recovery, we’ll advise against legal action. However, if litigation seems viable, you’ll need to consider the costs involved. Upfront legal fees, including court and filing costs, typically range from $600 to $700. These are necessary to pursue the owed amounts vigorously.
Litigation is not a step to be taken lightly. It requires a commitment of resources with no guaranteed outcome. If we proceed and succeed, the costs are justified. If not, we close the case, and you owe us nothing further. It’s a calculated risk, one that we navigate with precision and care.
Our rates are competitive, and we tailor them to the volume and age of claims. The decision to litigate is ultimately yours, and we’re here to guide you through the process, ensuring that every action taken is in your best interest.
Here’s a quick overview of our collection rates:
Number of Claims | Accounts < 1 Year | Accounts > 1 Year | Accounts < $1000 | Attorney Placed |
---|---|---|---|---|
1-9 | 30% | 40% | 50% | 50% |
10+ | 27% | 35% | 40% | 50% |
Remember, these rates apply to the amount collected, ensuring our goals align with your recovery success.
Payment Rates and Terms
After navigating the initial recovery and legal action phases, we arrive at a critical juncture: establishing payment rates and terms. Our rates are competitive, tailored to the age and size of the claims. For instance, accounts under a year old are charged at a lower percentage than older accounts.
We believe in transparency and fairness in our fee structure, ensuring that our clients are fully aware of the costs associated with our services.
Here’s a quick overview of our rates based on the number of claims:
-
For 1-9 claims:
- Accounts under 1 year: 30%
- Accounts over 1 year: 40%
- Accounts under $1000: 50%
- Accounts with an attorney: 50%
-
For 10 or more claims:
- Accounts under 1 year: 27%
- Accounts over 1 year: 35%
- Accounts under $1000: 40%
- Accounts with an attorney: 50%
Should litigation be necessary, upfront legal costs will apply, typically ranging from $600 to $700. These fees are essential for filing a lawsuit on your behalf. However, if our attempts to collect via litigation fail, you will owe nothing further to our firm or our affiliated attorney.
Frequently Asked Questions
What is the process for handling late payments in the biotech industry trade with Taiwan?
The process involves a 3-phase Recovery System which includes initial recovery efforts, legal action if necessary, and specific payment rates and terms.
How long does the initial recovery phase typically last?
The initial recovery phase usually lasts for 30 to 60 days, during which attempts are made to contact the debtor and resolve the payment issue.
What happens if recovery is not likely during the initial phase?
If recovery is deemed unlikely, the case may be recommended for closure, and no fees will be owed to the firm or affiliated attorney.
What are the options if legal action is recommended?
The options include proceeding with legal action by paying upfront legal costs or withdrawing the claim with no fees owed to the firm or attorney.
What are the collection rates based on the number and age of claims?
Collection rates vary based on the number of claims submitted and the age of the accounts, with different percentages for different scenarios.
What are the steps involved in the legal action phase?
The legal action phase includes filing a lawsuit on behalf of the client for all monies owed, with upfront legal costs to be paid by the client.