A Shanghai Houseware Company
A French Wholesale Company
Before this case came to Expert Planet, the creditor company had been doing business with the debtor company for several years. In fact, their relationship had started in 2013 and had gone smoothly without a hitch until, in May 2019, problems suddenly arose.
Looking for Debt Collection Specialists？
Struggling to get paid on delinquent accounts?
Our debt collection specialists are experts at recovering your debt promptly and efficiently.
Contact us today to learn how we can help your business.
It all started when a normal shipment of goods from the creditor arrived at the port in France, but to the creditor’s surprise, payment for the goods was never received. This resulted in an unpaid receivable totaling more than 20,000 USD, which was no small amount for the creditor company. The creditor wasted no time contacting the debtor company to see what the problem was, and after communicating with them, found that the debtor had recently sold a large order of goods to a supermarket but payment for the order wouldn’t be received for another 180 days and was therefore experiencing a temporarily tight cash flow.
After understanding the debtor company’s situation, the creditor signed a payment agreement, where the debtor company would pay the amount owed in installments. Additionally, a stipulation of the agreement was that if the debtor company was ever unable to pay an installment, the debtor company’s parent company would be responsible for paying it.
Unfortunately, the debtor company then failed to make the agreed-upon payments, and the creditor knew that they needed to find a collection professional to help them. The creditor scoured the internet for collection professionals and found several firms offering international collection services. When the creditor contacted these firms, they were surprised to find that the rates quoted to them were far too high for their company to stomach, and although the commission rates they were quoted varied a bit from agency to agency, they hovered at around 40%. This would mean that if these agencies successfully helped them collect their receivables of over 20,000 USD, the creditor company would only receive around 10,000 USD.
How We Connect Creditors to International Experts
The search for a collection professional continued until the creditors eventually landed on Expert Planet. Tired and without much hope, they browsed through Expert Planet. At first, after so many failures, they had little hope of success. But hope quickly returned as they found the functionality of the site to be exactly what they had needed all along. On Expert Planet, using the speciality tags and the nation selection tool, they were able to directly narrow down Expert Planet’s huge selection of experts to just the experts that fit their needs.
Browsing through the available experts, they were able to evaluate each expert based on their platform rating, which had been calculated by the feedback from other creditors who had been in situations just like they were currently in. This provided firm information about how successful and happy other creditors had been by using this collection expert. Furthermore, each expert had a long history of platform activity and had posted many articles relating to the collection in their country of operation. Reading through this information enabled them to further judge the professionalism of each expert.
Finally, they narrowed their choice down to two different collection professionals in France. Using Expert Planet’s instant messaging system, they contacted each professional and provided them with brief details of their case. Both experts responded promptly and were happy to explain how they could best serve the creditor for this specific case. One expert, however, happened to be located in the same city as the debtor, so they decided to pursue further contact with that expert.
Communication with their expert through Expert Planet’s communication tools was far superior to how they had felt when communicating with other collection agencies. When talking with the international collection agencies they had found before, communication had been marred and murky, and the creditor had felt confused and apprehensive because there had been no way for them to communicate directly with the French collection expert who was going to work with their case. On Expert Planet, however, they felt a sense of security and could better understand the exact way the French collection expert was going to help because the two of them were connected directly, with no person or company standing in the middle.
There were several details that the expert wanted to discuss, so they had a teleconference through the Expert Planet teleconference platform. The meeting was smooth and efficient, and the creditor found the connection quality far better than other international teleconference options. During the teleconference, the creditor and collection professional spoke face to face, and the creditor was able to build further confidence in the reliability and professionalism of this collection professional.
Finally, it was time to sign a contract and agree on a collection commission for the collection professional. When they discussed terms, the creditor was pleasantly surprised to find that the rate the French collection company charged was 30%, significantly lower than what they had been quoted before. In fact, the French collection company informed them that with a case like theirs, 30% was essentially the standard commission for a collection professional in France. This could only mean that the other collection agencies the creditor had contacted before finding Expert Planet were just marking up the price and then passing the business on to a local expert.
Happy with the lower rate, the creditor signed the contract and commenced formal business with the French collection expert. The collection expert then got to work immediately, and the creditor was able to keep a constant check on the progress of their case via Expert Planet’s collection process tracking. Each time the expert made progress in the case, it was updated on the platform, and the creditor got an alert informing them of the progress. Via the French expert’s understanding of local law and customs, they were able to put the appropriate kind of pressure on the French firm, and finally, the French debtor agreed to pay.
In the end, by using Expert Planet to connect directly with a local professional, the creditor was able to feel more secure, communicate more efficiently, save time, and most importantly, save money on collection assistance.