Recover a $51,500 Debt in Only 4 Months
Background
Creditor
A Chinese Company from Tianjin
Debtor
A Haiti Company
At the beginning of 2018, Mr. Zhang from Tianjin Deruisi Co., Ltd received an order of $51,500 from a company in Haiti. Mr. Zhang had cooperated with this company for many years and they always paid for goods on time. But this time, they failed.
The age of the debt was over 2.5 years, and it was on the verge of becoming bad debt. Mr. Zhang was very anxious, and after in-depth research, he found that if he did debt collection via the judicial way, then it would take him a lot of time as well as thousands of dollars in legal fees. It came to light that Mr. Zhang would lose more if he failed to collect the debt.
He also thought about seeking help from a domestic collection company, but there were few collection companies whose business can cover Haiti. Also, Mr. Zhang was worried about their long collection period, their professionalism, and their prepaid commission… With all these worries, one day Mr. Zhang received a call from Expert Planet.
After communicating with Expert Planet customer service, Mr. Zhang found that this platform could connect him to collection experts who could cover Haiti. What impressed Mr. Zhang most was that Expert Planet provides debt collection service on a “No collection, No commission” basis. With this in mind, Mr. Zhang signed a collection agreement after communicating with Yadipza Benitez, a Dominican expert on Expert Planet who can cover Haiti.
Considering the long debt age (2.5 years) and the difficulty of collection, the expert quoted a 30% service fee (30% of the recovered amount). Although the service fee was high, Mr. Zhang agreed with no hesitation. After all, if the payment cannot be recovered, it will be a 100% loss.
PS: The shorter the aging time, the easier the collection will definitely be, and the lower the service fee will be. In the collection market, the commission is generally 10%-20% of the recovery amount, and some can even be as low as 10%.
Case Collection Process
Upon the receipt of the detailed information such as the debtor’s phone number, email, and address provided by Mr. Zhang, the expert established contact with the debtor. However, the debtor immediately hung up the call after it was connected, the email sent to them was not answered, and their factory had also been moved…
Fortunately, experts on Expert Planet are all industry leaders with years of experience in international and domestic debt collection, as well as other areas of credit risk management and international trade. Yadipza Benitez used her own database and social resources to do skip tracing, and successfully re-established contact with the debtor.
After investigation, Yadipza found that the debtor company was operating normally and fully capable of repaying their debt. But the debtor refused to acknowledge the existence of the debt. In November 2020, the expert sent the first collection letter to the debtor.
From December 2020 to January of the following year, the expert sent multiple emails, called many times, and even arranged staff from the Haiti branch to do a site visit. With all these efforts in pre-litigation mediation, the debtor company realized the serious legal consequences of its conduct and the serious obligations that it had to the creditor company, and finally agreed to repay the debt. The creditor successfully recovered all debts owed to them in February 2021.
To make sure creditors can get a timely update on their case progress, experts on Expert Planet need to update the collection record in the Expert Planet system timely whenever there is any progress.
The creditor was highly appreciative of the Expert Planet platform and they even wrote a Thank You letter to express their gratitude.
Testimonials from Our Client
Dear Staff and Expert:
Our customer, a Haiti company, purchased two containers of calcium hypochlorite products with a total value of 51,500 US dollars from our company in December 2018. We had been business partners for almost 10 years without any problems. Taking into account our good cooperation in the past, our company delivered the goods to the buyer without receiving the balance payment for this batch of goods.
However, from March of 2019, we never received a single positive response from the debtor company, and they just repeatedly refused to pay for various reasons: either they were having a tight cash flow or they would soon make the payment. At the same time, the staff of the debtor company’s financial department also changed several times.
We learned from our counterparts that the company had been doing business with other companies in China during this period of time. However, until 2020, they still hadn’t paid. In October 2020, Expert Planet staff contacted our company. After they learned the details of the case, they helped us connect with Yadipza Benitez, a Dominican collection expert who can cover Haiti. Our company provided the expert with detailed case information, trade records, related contracts and bills of lading, etc. With the help of Expert Planet staff and the expert’s hard work in four months, our company successfully recovered all debts in February 2021.
We highly appreciate the support from Expert Planet throughout the collection process. Thank you to the Expert Planet staff and the debt collection expert!
Also, we have proudly been featured among the top collection companies by DesignRush, check Expert Planet’s profile DesignRush.
