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Dealing with Late Payments in Aerospace Component Exports

Late payments in aerospace component exports can have a significant impact on a company’s financial health and operations. To address this issue effectively, it is crucial to have a recovery system in place and understand the rates for collection services. This article explores a recovery system for company funds and the rates for collection services in the aerospace industry.

Key Takeaways

  • Implement a 3-phase Recovery System to recover company funds efficiently.
  • Consider the possibility of recovery and the option of litigation when dealing with late payments.
  • Understand the rates for collection services based on the number of claims and account age.
  • Be aware of the upfront legal costs involved in proceeding with legal action for debt recovery.
  • Regularly communicate with debtors and utilize various methods to resolve outstanding accounts.

Recovery System for Company Funds

Phase One

Within the first 24 hours of initiating Phase One, we spring into action. Immediate and relentless, we deploy a multi-channel approach to engage the debtor. Our strategy includes:

  • Sending the initial demand letter via US Mail.
  • Conducting skip-tracing and investigations to unearth the most current financial and contact details.
  • Utilizing phone calls, emails, text messages, and faxes to negotiate a resolution.

We’re committed to making daily contact attempts during the critical first 30 to 60 days. If these efforts don’t yield results, we seamlessly transition to Phase Two, involving our network of affiliated attorneys.

Our goal is to resolve the matter swiftly, minimizing the need for further escalation. However, should the situation demand it, we’re prepared to advance with determination and precision.

Phase Two

Once we escalate to Phase Two, our affiliated attorneys take the reins. They draft demand letters and make persistent calls to the debtor. Here’s what we do:

  • Draft and send a series of firm demand letters on law firm letterhead.
  • Initiate relentless phone contact, aiming to negotiate a resolution.

We don’t relent. Our attorneys’ persistent efforts are designed to demonstrate the seriousness of the situation to the debtor.

If these actions don’t yield results, we prepare a detailed report. This outlines the challenges faced and our recommended course of action. It’s a decisive moment for our clients, as we may advise proceeding to Phase Three or closing the case if recovery seems unlikely.

Phase Three

In the final stretch, we assess the viability of recovery. If prospects are dim, we advise case closure—no fees incurred. Should litigation be the path, you face a choice. Withdraw the claim at no cost, or brace for legal expenses. These may range from $600 to $700, depending on jurisdiction.

Upon opting for litigation, upfront costs are yours to bear. Our affiliated attorney then champions your cause, seeking full recompense. Failure to collect post-litigation? You owe us nothing.

Our commitment to transparency extends to our fee structure, which is contingent on successful collection. Here’s a snapshot:

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

Note: Rates adjust based on the number of claims. We strive for competitive pricing, tailored to your situation.

Rates for Collection Services

Rates for 1 through 9 Claims

When we tackle late payments, our focus is on efficiency and effectiveness. For 1 through 9 claims, we’ve structured our rates to reflect the urgency and age of the account. The fresher the debt, the lower the rate – it’s that simple.

For accounts less than a year old, we charge 30% of the amount collected. As debts age, our efforts intensify, and so does the rate: 40% for accounts over a year. And for those particularly small or stubborn accounts under $1000, or those requiring legal action, the rate is set at 50%.

Our commitment is to provide you with a transparent and fair pricing structure, ensuring you get the best possible return on your recovery efforts.

Here’s a quick breakdown:

  • Accounts under 1 year: 30% of the amount collected
  • Accounts over 1 year: 40% of the amount collected
  • Accounts under $1000: 50% of the amount collected
  • Accounts placed with an attorney: 50% of the amount collected

Remember, these rates are competitive and designed to align with your financial recovery goals. We’re in this together, and our success is measured by your satisfaction and the recovery of your funds.

Rates for 10 or More Claims

When we handle a volume of 10 or more claims, we’re able to offer more competitive rates. The scale of operations allows us to reduce costs, passing the savings onto you. For accounts less than a year old, the rate is 27% of the amount collected. Older accounts are charged at 35%.

For smaller balances under $1000, we understand the importance of flexibility and have set the rate at 40%. Legal actions, however, remain at a 50% rate due to the intricate nature of such proceedings.

Here’s a quick breakdown:

Age of Account Rate
Under 1 year 27%
Over 1 year 35%
Under $1000 40%
Legal Action 50%

We strive to make the recovery process as cost-effective as possible, ensuring that your business retains the maximum possible revenue from overdue payments.

Frequently Asked Questions

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

Phase One involves sending letters to debtors, skip-tracing and investigation, contacting debtors via various methods, and escalating to Phase Two if necessary.

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

Phase Two includes forwarding the case to an affiliated attorney, drafting demand letters, contacting debtors, and recommending the next steps if resolution fails.

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

For 1 through 9 claims, rates range from 30% to 50% of the amount collected depending on the age of the account and whether it is placed with an attorney.

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

For 10 or more claims, rates range from 27% to 50% of the amount collected depending on the age of the account and whether it is placed with an attorney.

What happens if the recommendation after Phase Three is litigation?

If litigation is recommended, the client can choose to proceed with legal action by paying upfront legal costs. If litigation fails, the client owes nothing to the firm or attorney.

What are the possible outcomes after Phase Three if recovery is not likely?

If recovery is not likely, the case may be closed with no obligation to pay the firm or attorney. Alternatively, the client can choose to pursue standard collection activities or proceed with legal action at their own cost.


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