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Securing Payments from Canadian Importers of Industrial Equipment

When dealing with Canadian importers of industrial equipment, it is crucial to have a secure system in place for recovering company funds. This article focuses on two key aspects: the Recovery System for Company Funds and the Rates for Debt Collection Services. Let’s explore the strategies and rates that can help ensure successful payment collection from Canadian importers of industrial equipment.

Key Takeaways

  • Implement a 3-phase Recovery System to efficiently recover company funds from Canadian importers of industrial equipment.
  • Consider the two options for Phase Three: closure of the case if recovery is unlikely or proceeding with litigation after paying upfront legal costs.
  • Be aware of the competitive collection rates based on the number of claims submitted, with different rates for accounts under 1 year and over 1 year in age, as well as accounts under $1000.00.
  • For 10 or more claims, lower rates apply compared to 1 through 9 claims, with accounts under 1 year in age at 27% and over 1 year in age at 35% of the amount collected.
  • Accounts placed with an attorney have specific rates, emphasizing the importance of understanding the terms and conditions of debt collection services.

Recovery System for Company Funds

Phase One

Initiating the recovery process, immediate action is taken within 24 hours of placing an account. The debtor receives the first of four letters, and our team conducts a thorough skip-trace to gather essential financial and contact information. Persistence is key; our collectors engage in daily attempts to reach a resolution through various communication methods.

  • First letter sent via mail
  • Comprehensive skip-tracing
  • Persistent collector contact

Should these efforts not yield results, the transition to Phase Two is seamless, involving our network of affiliated attorneys. The goal is to secure payment swiftly and efficiently, minimizing the time your funds are outstanding.

Phase Two

Upon escalation to Phase Two, the case is transferred to a local attorney within our network. Immediate action is taken to assert the seriousness of the debt recovery process. The attorney drafts a series of demand letters on law firm letterhead, signaling a shift in the approach to the debtor. Concurrently, the attorney’s office initiates direct telephone contact, reinforcing the urgency of the matter.

If these intensified efforts do not yield a resolution, a strategic assessment is conducted. The outcome determines whether to advance to Phase Three or to recommend alternative actions. This decision is critical, as it shapes the subsequent recovery strategy.

The goal is clear: to secure payment efficiently and effectively, minimizing the need for further escalation.

The process is transparent, with regular updates provided to ensure you are informed at every step. Should the case require progression to Phase Three, a detailed explanation of the issues and recommended course of action will be communicated.

Phase Three

Upon reaching Phase Three, the path forward becomes clear. If the debtor’s assets and case facts suggest low recovery chances, we advise case closure at no cost. Conversely, if litigation appears viable, a critical choice awaits.

  • Decision to litigate requires upfront legal fees, typically between $600 to $700.
  • No litigation decision means no fees, with the option to continue standard collection efforts.

Should litigation proceed and succeed, the claim encompasses all owed monies, including filing costs. Failure to collect post-litigation results in case closure, absolving you of further financial obligations to our firm or affiliated attorneys.

Litigation is a significant step, and we ensure you have all necessary information to make an informed decision. Our transparent process aims to secure your funds with minimal risk.

Rates for Debt Collection Services

Rates for 1 through 9 Claims

When dealing with a smaller volume of claims, the rates for debt collection services are structured to accommodate the intensity of the effort required. For claims that are less than a year old, the fee is set at 30% of the amount collected. This rate reflects the relatively recent nature of the debt and the higher likelihood of successful recovery.

For older accounts, those over a year, the rate increases to 40% of the collected amount. This increment accounts for the additional challenges and resources needed to pursue older debts. Claims that are particularly small, under $1000.00, or those that necessitate legal action, are subject to a 50% fee, given the specialized handling they require.

The fee structure is designed to be transparent and directly proportional to the effort and resources invested in recovering your funds.

Here’s a quick breakdown of the rates:

Age of Account Rate
Under 1 year 30%
Over 1 year 40%
Under $1000 50%
Legal action 50%

Rates for 10 or More Claims

When handling a volume of 10 or more claims, economies of scale come into play, allowing for more competitive rates. Bulk submissions not only streamline the recovery process but also reduce the cost burden on your company. The more claims you submit, the lower the percentage we take.

Age of Account Rate of Collection
Under 1 year 27%
Over 1 year 35%
Under $1000 40%
With Attorney 50%

For substantial claim volumes, our tiered pricing structure ensures that your recovery costs are minimized while maximizing the potential for fund retrieval.

Remember, the goal is to secure your payments efficiently and effectively. With our tailored approach, you can rest assured that your bulk claims are managed with the utmost care and professionalism.

Frequently Asked Questions

What is the Recovery System for Company Funds?

The Recovery System for Company Funds consists of three phases. Phase One involves sending letters to debtors, skip-tracing, and attempting to contact debtors for resolution. Phase Two includes forwarding the case to affiliated attorneys for further action. Phase Three involves recommending closure of the case if recovery is unlikely or proceeding with litigation at the client’s decision.

What are the rates for debt collection services for 1 through 9 claims?

For 1 through 9 claims, the rates are as follows: Accounts under 1 year in age – 30% of amount collected, Accounts over 1 year in age – 40% of amount collected, Accounts under $1000.00 – 50% of amount collected, Accounts placed with an attorney – 50% of amount collected.

What are the rates for debt collection services for 10 or more claims?

For 10 or more claims, the rates are as follows: Accounts under 1 year in age – 27% of amount collected, Accounts over 1 year in age – 35% of amount collected, Accounts under $1000.00 – 40% of amount collected, Accounts placed with an attorney – 50% of amount collected.

What happens if the recovery is unlikely in Phase Three of the Recovery System?

If recovery is unlikely in Phase Three, the case may be recommended for closure with no fees owed to the firm or affiliated attorney. Alternatively, if litigation is recommended and the client decides not to proceed, they owe nothing. If legal action is pursued, upfront legal costs are required.

What are the upfront legal costs for proceeding with legal action in Phase Three?

The upfront legal costs for proceeding with legal action in Phase Three typically range from $600.00 to $700.00, depending on the debtor’s jurisdiction. These costs cover court fees, filing fees, and other expenses related to the lawsuit.

How are the collection rates determined for debt collection services?

The collection rates for debt collection services are determined based on the number of claims submitted within the first week of placing the first account. Rates vary for accounts based on age, amount, and whether they are placed with an attorney.

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