CIS DRS
DEBT COLLECTION IN EUROPE FOR CREDITOR FROM CHINA
Creditor:
Platform for hotels to attract traffic and reservations
Debtor:
Customers
Case type:
Global B2B debt portfolio
Our client is a worldwide supplier of shoes and is one of the leading sellers of listed products, based in China. The Debtor’s company is one of Europe’s leading fashion retailers. They have over a thousand stores in up to 20 European countries. So their export is tightly related to the network of distribution in Europe. This sounds like a great market to export goods due to sound institutions, power of law and other benefits. However, business is connected with risks. Overdue receivables became an issue to our valued client.
Typical debt collection case may look like the following. Debtor (a local seller) entered into the agreement with the creditor (from China). Creditor is an international chain with many brands. Once shipment has been made the debtor should pay the necessary invoices. However, the debtor made a very slight delay in payment for the delivered products and our team was hired to investigate the opportunity to pay timely. After the investigation we reported to the creditor regarding the issues and the debtors’ reply. Being happy with the report, the creditor has assigned the case to us for further collection. It became a complex project due to the necessity to save the relationships between parties and to arrange timely payments.
Our team gathered all necessary information about the debtor and carefully studied the available trade documents. Our lawyers have developed the collection workflow. It included the following: letters of demand, communication scripts, information search algorithms, negotiation strategies, language peculiarities, data transfer and other compliance issues.
It should be also noted that the most important part has been agreed - the reporting standard. Client timely receiving all necessary reports regarding the collection progress. Moreover, additional analysis and statistics helped to upgrade the financial control process and underwriting assessment. Following excellent client service as a value, our teams have advised the client regarding improvements in their interactions with their debtors to reduce the risk of defaults.
Our lawyers managed to convince the debtor's management to pay overdue invoices as soon as possible in order to continue cooperation with the supplier. As a result our client received USD 312K within three weeks.
Typical debt collection case may look like the following. Debtor (a local seller) entered into the agreement with the creditor (from China). Creditor is an international chain with many brands. Once shipment has been made the debtor should pay the necessary invoices. However, the debtor made a very slight delay in payment for the delivered products and our team was hired to investigate the opportunity to pay timely. After the investigation we reported to the creditor regarding the issues and the debtors’ reply. Being happy with the report, the creditor has assigned the case to us for further collection. It became a complex project due to the necessity to save the relationships between parties and to arrange timely payments.
Our team gathered all necessary information about the debtor and carefully studied the available trade documents. Our lawyers have developed the collection workflow. It included the following: letters of demand, communication scripts, information search algorithms, negotiation strategies, language peculiarities, data transfer and other compliance issues.
It should be also noted that the most important part has been agreed - the reporting standard. Client timely receiving all necessary reports regarding the collection progress. Moreover, additional analysis and statistics helped to upgrade the financial control process and underwriting assessment. Following excellent client service as a value, our teams have advised the client regarding improvements in their interactions with their debtors to reduce the risk of defaults.
Our lawyers managed to convince the debtor's management to pay overdue invoices as soon as possible in order to continue cooperation with the supplier. As a result our client received USD 312K within three weeks.
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OTHER CASES:
INTERNATIONAL DEBT RECOVERIES OF SOFTWARE LICENSES
Creditor has provided the debtor with the license for data analysis access. Debtor company didn't manage to cover outstanding payments in time. Moreover during the collection process the debtor company was reorganized. Lawyers had to protect the client from other creditors, had to support the creditors claims during the reorganization and follow up the payment schedule. Finally the debt was covered in full.
GLOBAL SUBCONTRACTOR FOR COLLECTION AGENCIES
An international company that provides global services of LED design and controlling of multimedia systems in sports arenas from the one side and the debtor company in another country from the other side. Creditor has signed a shipment export contract with the debtor. Once the invoices were overdue the creditor decided to hire a local debt collection agency (DCA). Local agency uses CISDRS as a reliable subcontractor to handle collections and give global solutions for accounts receivable.
ACCOUNTS RECEIVABLE PORTFOLIO RECOVERIES FOR HOTELS BOOKING SOLUTIONS
The client has reverted to us with the request to assist with the debt collection of outstanding balances for inspection, verification, testing and certification services in numerous regions, such as EU, MENA and LATAM. Their key customer required debt recovery services for B2B claims in many countries. Our team has drafted debt negotiation scripts in various languages and successfully used them later. Proof of payment confirmation has been also integrated in accordance with the creditors’ requirements: exchange format, form of the request etc. So we managed to combine interests of the creditor (to obtain recoveries) and DCA (to receive a reliable solution for global collections)
COMMERCIAL CREDIT COLLECTION FOR TUBES MANUFACTURER
Debtor (a local seller) entered into the agreement with the creditor (from China). Creditor is an international chain with many brands. Once shipment has been made the debtor should pay the necessary invoices. However, the debtor made a very slight delay in payment for the delivered products and our team was hired to investigate the opportunity to pay timely. It became a complex project due to the necessity to save the relationships between parties and to arrange timely payments. Our lawyers have developed the collection workflow. It should be also noted that the most important part has been agreed - the reporting standard. Client timely receiving all necessary reports regarding the collection progress. Our lawyers managed to convince the debtor's management to pay overdue invoices as soon as possible in order to continue cooperation with the supplier. As a result our client received USD 312K within three weeks
PORTFOLIO DEBT RECOVERY FOR SOFTWARE DEVELOPMENT COMPANY
Our client is ranked as the world’s fifth in the complete production process of iron-making, steel-making, tube rolling and further processing. Obviously such activities are supported by many shipment agreements of exported products. Unfortunately not every and each customer (importer) follows the agreed terms of payment. In the case below the Debtor’s company is one of the largest energy companies in the world. The parties have added the clause that established the obligation of a state-owned company in a country of the debtor to cover the outstanding amount instead of the debtor in case of delay. Since the contract was bilateral, this made the above clause invalid. Our lawyers did their best to pushing the debtor to pay the debt or to give a schedule for the debt repayment. The debtor company started to pay money according to the confirmed schedule
INTERNATIONAL PORTFOLIO DEBT COLLECTION
Due to the poor payment discipline, the recovery of debts in the high-risk regions and countries arose. Therefore, the creditor has engaged us in the debt collection process. So our team of lawyers has been forced within a number of challenges: how to build effective AR portfolio management, information research and timely reporting. Of course the core task was to collect and recover as much as possible and as fast as possible. Effective written communication and in person negotiations gave great results and we managed to overcome expectations of the client in recovery rates. So we currently manage debts once the pending invoice is overdue
DEBT RECOVERY IN PARAGUAY FOR CREDITOR FROM EUROPE
Our client handles more than 5 million orders annually. We have advised the client on dispute resolution with its customers. When invoicing issues or issues regarding the contract arose, our team assisted our client in debt restructuring worldwide. Of course, the global character of the debts required to work within local teams or lawyers to assist our client. We believe that this task was successfully completed. Or the creditor received a “one window” approach for collection cases allocation and coordination. All other efforts were managed with lawyers inside our network
COLLECTION OF GLOBAL B2B DEBT PORTFOLIO
Our client is a travel fare aggregator and travel metasearch engine for lodging reservations. Client works with companies in more than 230 countries globally. More than 1,5 million operations are handled daily. So there is a necessity to check, control and recover a portfolio of unpaid invoices to secure cash flows. We have been representing creditor throughout the world. The sole factor in this deal is that we had to conduct communication with the debtors (legal entities) in different languages in 80 countries. Our lawyers have developed the collection workflow. More than 15,000 of claims from the debt portfolio we successfully restructured.
COLLECTION OF INSURED EXPORT COMMERCIAL DEBTS
The debtor was located in one of CIS countries. At the very beginning the deal was typical: exporter from pharmaceutical industry agreed with the importer from CIS country a shipment of goods. The deal was insured by our client. However, the importer was not able to pay in time. Debt occured. CIS DRS was enrolled as a recovery subcontractor to handle the dispute. Lawyers effectively managed to collect the debt in a particular case.