Managing unpaid bills in pharmaceutical consultancy can be a challenging task that requires a strategic approach. In this article, we will explore a recovery system for company funds and rates for collection services in the pharmaceutical consultancy industry. By understanding these key aspects, companies can effectively manage their unpaid bills and improve their financial stability.
Key Takeaways
- Implement a 3-phase recovery system for company funds to maximize the chances of recovering unpaid bills.
- Understand the two possible recommendations in Phase Three: closure of the case or proceeding with litigation.
- Be aware of the upfront legal costs involved in proceeding with legal action in Phase Three.
- Know the competitive collection rates for 1 through 9 claims and 10 or more claims in the pharmaceutical consultancy industry.
- Utilize skip-tracing and investigative methods in Phase One to obtain the best financial and contact information on debtors.
Recovery System for Company Funds
Phase One
Initiating the recovery process, within 24 hours of account placement, Phase One kicks off with decisive actions. A series of four letters is dispatched to the debtor, marking the start of a rigorous communication campaign. Our team employs skip-tracing to gather essential financial and contact information, ensuring no stone is left unturned.
Daily attempts to engage the debtor are made through phone calls, emails, text messages, and faxes. This intensive 30 to 60-day effort is designed to secure a resolution swiftly. Should these efforts not yield the desired outcome, the transition to Phase Two is immediate, involving our network of affiliated attorneys.
The effectiveness of Phase One lies in its structured approach:
- Dispatch of initial communication
- Comprehensive information gathering
- Persistent debtor engagement
- Evaluation and escalation to Phase Two if necessary
Phase Two
Upon escalation to Phase Two, the case is transferred to a local attorney within our network, ensuring legal leverage is applied. The attorney’s actions include:
- Drafting and sending a series of authoritative letters on law firm letterhead.
- Initiating direct telephone contact to negotiate payment.
In this phase, the intensity of recovery efforts increases, with a focus on legal persuasion to secure payment.
Should these measures not yield results, a detailed analysis of the debtor’s situation is conducted. Based on this, we provide a clear recommendation for the subsequent phase, ensuring transparency and strategic decision-making for our clients.
Phase Three
Upon reaching Phase Three, the path forward becomes clear. If our investigation suggests that recovery is unlikely, we advise case closure, incurring no cost to you. Conversely, should litigation be the recommended route, a decision rests on your shoulders.
Choosing not to litigate allows for claim withdrawal or continued pursuit through standard collection activities—calls, emails, faxes, and the like, at no extra charge. Opting for litigation necessitates upfront legal fees, typically between $600 to $700, covering court costs and filing fees. These fees empower our affiliated attorney to seek full recovery on your behalf.
Should litigation not result in collection, the case concludes, and no further fees are owed to our firm or attorney.
The decision at this juncture is pivotal, balancing the potential for recovery against the certainty of upfront costs. Your choice will dictate the final efforts to manage unpaid bills effectively.
Rates for Collection Services
Rates for 1 through 9 Claims
When dealing with a smaller volume of claims, the rates for collection services are structured to accommodate the unique challenges they present. For accounts less than a year old, the fee is 30% of the amount collected. This rate reflects the typically higher success rate with fresher debts.
For accounts that have aged beyond a year, the rate increases to 40%, acknowledging the additional effort required to recover these funds. Smaller debts, specifically those under $1000, incur a 50% fee due to the disproportionate resources they demand relative to the recovery amount.
The involvement of an attorney in the collection process automatically sets the rate at 50%, regardless of the account’s age or size. This is to cover the comprehensive legal maneuvers and expertise provided.
Here’s a quick breakdown of our rates for 1 through 9 claims:
- Accounts under 1 year: 30% of the amount collected
- Accounts over 1 year: 40% of the amount collected
- Accounts under $1000: 50% of the amount collected
- Accounts with attorney involvement: 50% of the amount collected
It’s essential to consider these rates when evaluating the cost-effectiveness of pursuing unpaid bills through a collection service.
Rates for 10 or More Claims
When handling a volume of 10 or more claims, our rates are designed to be more cost-effective, reflecting the bulk nature of the service. The larger the number of claims, the more you save.
For accounts less than a year old, the rate is a competitive 27% of the amount collected. Older accounts, over a year, are charged at 35%. For smaller balances under $1000, the rate is reduced to 40%. Regardless of the account’s age or size, if placed with an attorney, the rate remains at 50%.
Our tiered pricing structure ensures that your company’s financial recovery is maximized while maintaining a fair cost for our services.
Here’s a quick breakdown of our rates for bulk claims:
| Account Age | Rate |
|---|---|
| Under 1 year | 27% |
| Over 1 year | 35% |
| Under $1000 | 40% |
| With Attorney | 50% |
Remember, these rates are applied to the amount successfully recovered, aligning our interests with yours. The more we recover, the more both parties benefit. It’s a partnership geared towards mutual success.
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. Phase Two includes forwarding the case to an affiliated attorney for further action. Phase Three offers recommendations for either closing the case or proceeding with litigation.
What are the rates for collection services for 1 through 9 claims?
For 1 through 9 claims, the rates vary based on the age of the accounts and the amount collected. Accounts under 1 year in age are charged 30% of the amount collected, while accounts over 1 year in age are charged 40%. Accounts under $1000.00 incur a 50% fee, and accounts placed with an attorney also have a 50% fee.
What are the rates for collection services for 10 or more claims?
For 10 or more claims, the rates differ from 1 through 9 claims. Accounts under 1 year in age are charged 27% of the amount collected, accounts over 1 year in age are charged 35%, accounts under $1000.00 incur a 40% fee, and accounts placed with an attorney also have a 50% fee.
What happens if the Recovery System determines that recovery is not likely in Phase Three?
If recovery is not likely in Phase Three, the case may be recommended for closure, and there will be no fees owed to the firm or affiliated attorney. Alternatively, if litigation is recommended, the client can choose to proceed with legal action, bearing upfront legal costs.
What are the upfront legal costs if litigation is recommended in Phase Three?
If litigation is recommended in Phase Three, the client is required to pay upfront legal costs such as court fees, filing fees, etc., ranging from $600.00 to $700.00 depending on the debtor’s jurisdiction. These costs cover the filing of a lawsuit on behalf of the client.
What happens if attempts to collect via litigation fail in Phase Three?
If attempts to collect via litigation fail in Phase Three, the case will be closed, and no fees will be owed to the firm or affiliated attorney.
