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Handling Unpaid Invoices in USA-Saudi Medical Supplies Trade

In the USA-Saudi medical supplies trade, handling unpaid invoices is a critical aspect of maintaining financial stability and ensuring smooth business operations. The recovery system for unpaid invoices involves a three-phase process that includes initial recovery efforts, legal intervention, and decision-making on rates. This system is designed to provide a structured approach to recovering company funds and resolving outstanding debts. Understanding the key takeaways from each phase is essential for businesses engaged in international trade to navigate the complexities of invoice recovery effectively.

Key Takeaways

  • The recovery system for unpaid invoices involves a three-phase process: initial recovery, legal intervention, and decision-making on rates.
  • Phase One includes sending letters to debtors, skip-tracing, and daily attempts to contact debtors for resolution.
  • Phase Two involves forwarding cases to affiliated attorneys, drafting legal letters, and pursuing debtors via phone calls and letters.
  • In Phase Three, businesses must decide on litigation or closure based on the investigation of debtor assets and the likelihood of recovery.
  • The rates for recovery services are competitive and depend on the number of claims submitted, the age of accounts, and whether they are placed with an attorney.

Recovery System for Unpaid Invoices

Phase One: Initial Recovery Process

In the first phase of our recovery system, we spring into action within 24 hours of receiving an unpaid invoice. Our primary goal is to establish contact and negotiate a resolution. We deploy a multi-channel approach, sending the first of four letters and utilizing phone calls, emails, text messages, and faxes to reach the debtor.

Persistence is key. We commit to daily attempts to communicate with the debtor for the first 30 to 60 days. Here’s a snapshot of our initial efforts:

  • First letter sent via US Mail
  • Comprehensive skip-tracing and investigation
  • Persistent collector engagement

If our efforts in this phase do not yield results, we do not hesitate to escalate the matter to Phase Two, involving legal intervention. Our seamless transition ensures that no time is wasted in pursuing what is rightfully yours.

Phase Two: Legal Intervention

When our initial recovery efforts hit a wall, we escalate to legal intervention. At this juncture, we partner with a local attorney within the debtor’s jurisdiction. The attorney’s first move is to send a series of stern letters, backed by the weight of legal letterhead, demanding payment.

Simultaneously, the attorney’s team begins a relentless pursuit, reaching out to the debtor through calls, aiming to settle the debt. If these intensified efforts don’t break the deadlock, we’re at a crossroads. We’ll send you a detailed report, laying out the complexities of your case and our suggested next steps.

We’re committed to transparency and clarity at every phase. If the path to recovery seems dim, we’ll advise closing the case, with no fees owed to us or our legal partners.

Should litigation appear viable, you’re faced with a choice. If you opt for legal action, be prepared for upfront costs. These typically range from $600 to $700, depending on the debtor’s location. Here’s a quick breakdown of potential fees:

Action Estimated Cost
Court Costs $300 – $400
Filing Fees $300 – $350

If you decide against litigation, you can either withdraw the claim at no cost or let us continue our standard collection efforts. Remember, our goal is to recover what’s owed to you, with minimal risk on your part.

Phase Three: Decision Making and Rates

At this juncture, we weigh our options. Closure or litigation—the path we take hinges on the debtor’s asset investigation and the case’s merit. If recovery seems unlikely, we recommend closing the case, incurring no cost to you. Conversely, choosing litigation means fronting legal fees, typically $600-$700, for a robust pursuit of dues.

Our rates are competitive, structured to align with your claim’s specifics. Here’s a snapshot of our fee structure:

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

Decisions are pivotal. We stand ready to guide you through this final phase, ensuring clarity and transparency in every step.

Should you opt out of legal action, we can continue standard collection efforts at no extra charge. The choice is yours, and we’re here to support it.

Frequently Asked Questions

What is the recovery process for unpaid invoices?

The recovery process for unpaid invoices involves a three-phase system. Phase One includes sending letters to the debtor, skip-tracing, and attempting to contact the debtor for resolution. If unsuccessful, the case moves to Phase Two, where it is forwarded to a local attorney. Phase Three involves a recommendation for closure or litigation.

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

If all attempts to resolve the account fail in Phase One, the case is forwarded to Phase Two, where it is immediately sent to a local attorney within the debtor’s jurisdiction.

What are the options in Phase Three if the possibility of recovery is not likely?

In Phase Three, if the possibility of recovery is not likely, the recommendation will be closure of the case. There will be no obligation to pay the firm or the affiliated attorney for these results.

What are the options in Phase Three if litigation is recommended?

In Phase Three, if litigation is recommended, the options are to proceed with legal action, pay upfront legal costs, and file a lawsuit on behalf of all monies owed. Alternatively, the option is to allow continued pursuit of debtors with standard collection activity.

What are the rates for the recovery system?

The rates for the recovery system depend on the number of claims submitted within the first week of placing the first account. Rates vary based on the age and amount of the accounts, with different percentages for accounts placed with an attorney.

What are the rates for accounts under 1 year in age?

For accounts under 1 year in age, the rates are 30% of the amount collected for 1-9 claims and 27% of the amount collected for 10 or more claims.


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