Overdue payments in food and beverage exports to the UAE can significantly impact a company’s financial stability. In this article, we will explore a recovery system for company funds and the rates for debt collection in the UAE market.
Key Takeaways
- Implement a 3-phase Recovery System for efficient fund recovery in the UAE market.
- Understand the rates for debt collection based on the number of claims submitted.
- Consider the possibility of litigation or closure based on the investigation results.
- Be aware of the upfront legal costs involved in proceeding with legal action for debt recovery.
- Choose collection rates tailored to the age and amount of the accounts submitted.
Recovery System for Company Funds
Phase One
We hit the ground running with our Phase One strategy, ensuring no time is wasted. Within the first 24 hours of account placement, our team springs into action:
- The initial letter is dispatched to the debtor, marking the start of the recovery process.
- Comprehensive skip-tracing and investigation kick in to secure the most accurate financial and contact details.
- Our collectors engage with relentless determination, utilizing calls, emails, texts, and faxes to negotiate a resolution.
Persistence is key; our collectors make daily contact attempts for the first 30 to 60 days. Should these efforts not yield results, we seamlessly transition to Phase Two, escalating the case to our network of affiliated attorneys in the debtor’s locale.
We’re committed to a proactive approach, ensuring every avenue is explored to recover your funds swiftly and efficiently.
Phase Two
Once we escalate to Phase Two, our affiliated attorneys within the debtor’s jurisdiction take the reins. They draft a series of demand letters and make persistent attempts to contact the debtor via phone. Despite these efforts, if the resolution remains elusive, we prepare for the decisive Phase Three.
- The attorney sends the first demand letter on law firm letterhead.
- Persistent phone calls follow to ensure the debtor is aware of the seriousness of the situation.
We stand firm in our commitment to recover what is rightfully yours, navigating through the complexities of cross-border transactions and the challenges they present.
Should these measures not yield the desired outcome, we provide a clear and concise recommendation for the next course of action, ensuring transparency and alignment with your best interests.
Phase Three
At the crossroads of decision, we stand united, ready to guide you through the final phase. We assess and recommend, ensuring clarity in your next steps. If the odds are against us, we advise closure, sparing you further costs. Conversely, should litigation be the path, we lay out the financial landscape. Upfront legal costs, typically between $600 to $700, are your stepping stones to justice.
Litigation is not a journey to embark on lightly. We stand by you, but the choice is yours—to withdraw or to wage the legal battle. Should you choose to fight, we file suit, aiming to recover every penny owed, including filing costs. Failure to collect post-litigation means closure, with no financial burden on you.
Our commitment is to transparency and your peace of mind. No hidden fees, no surprises—just a clear path forward, regardless of the outcome.
Here’s a snapshot of our rates for legal action:
- Court costs, filing fees, etc.: $600 – $700
- No additional fees if collection attempts fail
Remember, our expertise spans various sectors, from handling unpaid invoices to navigating the complexities of the USA-UAE gold trade. We’re well-versed in the recovery system intricacies, ensuring your financial interests are safeguarded, even amidst UAE’s appetite for US food imports.
Rates for Debt Collection
Rates for 1 through 9 claims
When we tackle overdue 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. Here’s how we break it down:
- Accounts under 1 year in age: 30% of the amount collected.
- Accounts over 1 year in age: 40% of the amount collected.
- Accounts under $1000.00: 50% of the amount collected.
- Accounts placed with an attorney: 50% of the amount collected.
Our approach is designed to incentivize swift recovery while acknowledging the complexities of older debts. We understand that each claim is unique, and our rates are tailored to ensure that your company’s bottom line is always our top priority.
We’re not just recovering funds; we’re restoring your peace of mind and financial stability.
Remember, the goal is to recover what’s owed to you without causing undue strain on your resources. With our competitive rates, we strike a balance between aggressive pursuit and cost-effectiveness, ensuring that your business can continue to thrive even in the face of overdue payments.
Rates for 10 or more claims
When we handle a volume of 10 or more claims, we’re able to offer more favorable rates. Bulk submissions translate to efficiencies in our process, and we pass those savings on to you. Here’s how our rates break down for larger claim batches:
| Age of Account | Rate of Collection |
|---|---|
| Under 1 year | 27% |
| Over 1 year | 35% |
| Under $1000 | 40% |
| With Attorney | 50% |
We’re committed to maximizing your recovery while minimizing your costs. Our scaled rates reflect our dedication to your financial health.
Remember, these rates apply only after the first week of placing the initial account. It’s crucial to act swiftly to ensure the best possible outcome. Our team is adept at navigating the complexities of overdue payments, whether it’s handling unpaid invoices or solving debt puzzles in various trades, including the vibrant USA-UAE food import sector.
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 legal action. Phase Three offers two options: closure of the case if recovery is unlikely or proceeding with litigation with upfront legal costs.
What are the rates for debt collection for 1 through 9 claims?
For 1 through 9 claims, the rates depend on the age and amount of the accounts. Accounts under 1 year in age are charged 30% of the amount collected, accounts over 1 year are charged 40%, accounts under $1000.00 are charged 50%, and accounts placed with an attorney are charged 50%.
What are the rates for debt collection for 10 or more claims?
For 10 or more claims, the rates also depend on the age and amount of the accounts. Accounts under 1 year in age are charged 27% of the amount collected, accounts over 1 year are charged 35%, accounts under $1000.00 are charged 40%, and accounts placed with an attorney are charged 50%.
What happens if the recovery is unlikely during Phase Three?
If recovery is unlikely during Phase Three, the case may be recommended for closure and no fees will be owed. Alternatively, if litigation is recommended, the client can choose to proceed with legal action by paying upfront legal costs. If litigation fails, no fees will be owed.
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 legal expenses.
How are the collection rates structured for debt collection?
The collection rates for debt collection are structured based on the number of claims submitted within the first week. Rates vary for accounts under 1 year in age, accounts over 1 year, accounts under $1000.00, and accounts placed with an attorney.
