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Resolving Non-Payment Issues in Beam Sales

Resolving non-payment issues in Beam sales is crucial for maintaining a healthy financial flow within the company. Implementing an effective recovery system is key to recovering funds from debtors who have not made payments on time. In this article, we will explore the Recovery System for Non-Payment Issues in Beam sales and provide key takeaways to help businesses navigate through challenging situations.

Key Takeaways

  • Implement a structured Recovery System with multiple phases for handling non-payment issues effectively.
  • Consider legal action as a recommendation when initial recovery attempts are unsuccessful.
  • Understand the collection rates and fees associated with pursuing debtors through litigation.
  • Be aware of the decision-making process when choosing between closure of the case or proceeding with legal action.
  • Utilize competitive collection rates tailored to the specific circumstances of the non-payment issue.

Recovery System for Non-Payment Issues

Initial Recovery Phase

The Initial Recovery Phase is a critical juncture in the pursuit of unsettled beam sales. Immediate action is taken within 24 hours of account placement. A multi-channel approach is employed, involving letters, skip-tracing, and persistent communication attempts.

  • The debtor receives the first of four letters via US Mail.
  • Comprehensive skip-tracing and investigation are conducted to secure optimal financial and contact data.
  • Daily contact attempts are made for 30 to 60 days through calls, emails, texts, and faxes.

If these efforts do not yield a resolution, the case escalates to Phase Two, involving legal representation within the debtor’s jurisdiction. This transition is seamless, ensuring no momentum is lost in the recovery process.

Legal Action Recommendation

Upon deciding to take legal action, clients must be prepared for the associated costs. Upfront legal fees are mandatory, typically ranging from $600 to $700. These cover court costs, filing fees, and other expenses related to initiating a lawsuit. It’s crucial to understand that these costs are separate from any collection rates or fees that may apply upon successful recovery of the debt.

The decision to litigate is significant, and while it may increase the chances of debt recovery, it also entails financial commitment without a guaranteed outcome.

Our collection rates are competitive and vary depending on the volume and age of claims. For instance, accounts under one year are charged at a lower rate compared to those over a year old. The table below outlines our fee structure based on the number of claims and other factors:

Number of Claims Account Age Rate
1-9 Under 1 year 30%
1-9 Over 1 year 40%
1-9 Under $1000 50%
10+ Under 1 year 27%
10+ Over 1 year 35%
10+ Under $1000 40%

Note: Accounts placed with an attorney are subject to a 50% collection rate, regardless of the number of claims or the age of the account. This is to account for the additional legal expertise and efforts required in such cases.

Collection Rates and Fees

Understanding the financial implications of debt recovery is crucial. Collection rates vary depending on the age and size of the account, with a tiered structure incentivizing bulk submissions. For instance, accounts under a year old are subject to a 30% fee for 1-9 claims, which drops to 27% for 10 or more claims. Older accounts and those under $1000 incur higher fees.

Legal costs are an additional consideration. Should litigation be necessary, expect upfront costs ranging from $600 to $700, covering court and filing fees. These are required before our affiliated attorney initiates legal proceedings.

Here’s a quick breakdown of our standard rates:

Claims Submitted Accounts < 1 Year Accounts > 1 Year Accounts < $1000 Attorney Placed
1-9 30% 40% 50% 50%
10+ 27% 35% 40% 50%

It’s important to weigh the potential recovery against the costs involved. A strategic approach can optimize outcomes while managing expenses.


In conclusion, the process of resolving non-payment issues in Beam Sales involves a structured approach that includes a 3-phase Recovery System. Phase One focuses on initial contact and attempts to resolve the matter through communication and investigation. Phase Two escalates the process by involving affiliated attorneys to demand payment from the debtor. Finally, Phase Three presents two options based on the investigation results, either recommending closure of the case or proceeding with litigation. The decision-making process at this stage involves considerations of legal costs and potential recovery outcomes. Overall, the approach aims to efficiently address non-payment issues while providing clear guidance on the available courses of action.

Frequently Asked Questions

What is the Recovery System for Non-Payment Issues in Beam Sales?

The Recovery System consists of three phases: Initial Recovery Phase, Legal Action Recommendation, and Collection Rates and Fees.

What happens if recovery is not likely after investigation in Phase Three?

If recovery is not likely, the case will be recommended for closure, and there will be no fees owed to the firm or affiliated attorney.

What are the options if legal action is recommended in Phase Three?

You can choose to proceed with legal action by paying upfront legal costs or withdraw the claim with no fees owed.

What are the collection rates for accounts under 1 year in age?

For accounts under 1 year in age, the collection rates range from 27% to 30% depending on the number of claims submitted.

What actions are taken in Phase One of the Recovery System?

In Phase One, letters are sent to debtors, skip-tracing is conducted, and attempts are made to contact debtors for resolution.

What happens in Phase Two of the Recovery System?

In Phase Two, the case is forwarded to an affiliated attorney who drafts letters and contacts the debtor for payment.


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