When dealing with overdue accounts in cross-border pharmaceutical deals, it is crucial to have a robust recovery system in place to secure company funds effectively. This article explores a three-phase Recovery System designed to recover funds in such scenarios, outlining the process from initial contact to potential litigation.
Key Takeaways
- The Recovery System for Company Funds involves three phases: Phase One, Phase Two, and Phase Three, each with specific actions and outcomes outlined.
- In Phase One, initial contact is made with the debtor through letters, skip-tracing, and collector communication, with daily attempts to resolve the account within the first 30 to 60 days.
- Phase Two involves forwarding the case to an affiliated attorney for legal action, including demand letters and direct communication with the debtor to seek resolution.
- Phase Three presents two options: closure of the case if recovery is unlikely, or proceeding with litigation at the client’s discretion, with associated legal costs and collection rates based on the outcome.
- Rates for collection services vary based on the number of claims submitted and the age and amount of the accounts, with competitive rates for different scenarios.
Recovery System for Company Funds
Phase One
In the initial stage of our recovery system, we spring into action within 24 hours of receiving an account. Our first step is to dispatch a series of four letters to the debtor, ensuring they are aware of the outstanding obligations. Simultaneously, we conduct a thorough skip-trace to uncover the most current financial and contact details of the debtors.
We don’t just stop at letters; our collectors are relentless. Daily attempts to reach a resolution through phone calls, emails, text messages, and faxes are standard practice for the first 30 to 60 days. It’s a rigorous process, but essential for mitigating the impact of payment delays and unpaid invoices.
If our persistent efforts in Phase One don’t yield results, we’re prepared to escalate. We transition to Phase Two, where the case is promptly forwarded to an affiliated attorney within the debtor’s jurisdiction. This marks a shift from internal recovery efforts to legal advocacy—a necessary step to secure overdue accounts in cross-border pharmaceutical deals.
Phase Two
We’ve escalated the matter to our legal network. Immediate action is taken by the affiliated attorney to demand payment. The debtor is now facing serious consequences.
- A series of stern letters on law firm letterhead are dispatched.
- Persistent phone calls aim to secure a resolution.
We’re not just persistent; we’re relentless in our pursuit. Every angle is explored, every legal avenue assessed.
If this phase doesn’t yield results, we’re prepared to advise on the tough decisions ahead. It’s about striking the balance between firm action and prudent resource allocation.
Phase Three
At the culmination of our efforts, we face a decisive moment. We assess the viability of recovery and provide clear recommendations. If the odds are against us, we advise closure with no fees incurred. Conversely, should litigation appear promising, we lay out the path ahead.
Litigation is a serious step. It requires upfront investment in legal fees, typically between $600 to $700. Yet, if you choose to proceed, our affiliated attorney will aggressively pursue all owed monies. Should litigation not yield results, rest assured, you owe us nothing.
Our fee structure is straightforward and competitive. We adapt our rates based on the age of the account, the amount, and the number of claims. This ensures you receive tailored services that align with your specific needs.
Here’s a snapshot of our rates for clarity:
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For 1-9 claims:
- Accounts under 1 year: 30%
- Accounts over 1 year: 40%
- Accounts under $1000: 50%
- Accounts with an attorney: 50%
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For 10+ claims:
- Accounts under 1 year: 27%
- Accounts over 1 year: 35%
- Accounts under $1000: 40%
- Accounts with an attorney: 50%
In every scenario, our goal is to secure your overdue accounts with efficiency and expertise. Trust in our system to navigate the complexities of cross-border pharmaceutical deals.
Frequently Asked Questions
What is the Recovery System for Company Funds?
The Recovery System for Company Funds consists of three phases aimed at recovering overdue accounts in cross-border pharmaceutical deals.
What happens in Phase One of the Recovery System?
Phase One involves sending letters to debtors, skip-tracing, contacting debtors via various methods, and attempting to resolve the account. If unsuccessful, the case moves to Phase Two.
What is the process in Phase Two of the Recovery System?
In Phase Two, the case is forwarded to an affiliated attorney who drafts letters demanding payment and contacts the debtor. If no resolution is reached, recommendations for the next steps are provided.
What are the options in Phase Three of the Recovery System?
In Phase Three, if recovery is deemed unlikely, the case may be closed with no fees owed. Alternatively, litigation may be recommended, requiring upfront legal costs. Rates for collection services are also provided.
What are the costs involved in proceeding with legal action in Phase Three?
If legal action is pursued in Phase Three, upfront legal costs such as court fees are required. Rates for collection services vary based on the number of claims and age of accounts.
How are collection rates determined in the Recovery System?
Collection rates in the Recovery System depend on the number of claims submitted, the age of accounts, and whether accounts are placed with an attorney. Rates range from 27% to 50% of the amount collected.
