Defending Your Receivable is Our Mission
Garment industry is fiercely competitive due to unpredictable consumer demand and uncertainties arising from the US China Trade War. In order to maintain a strong relationship with customers, manufacturers would allow for prolonged payment terms. This would affect company’s cash liquidity and operating funds.
The Korean electronics parts manufacturer approached iQor RMS HK in collecting a large unpaid debt from their US buyer. The buyer had placed heaps orders with our client during last year; however, due to global economy downturn, the buyer failed to collect the finished products and denied to fulfill the rest orders as well. All finished products and materials have been abandoned in client’s warehouse for over half year, which costs US$1,000,000 in total.
The jewelry industry is notorious for its inconsistent pricing model stemming from the difficulties to authenticate its genuineness and quality control standard. As a result not many insurance companies are willing to provide sufficient insurance coverage in this segment. Lacking insurance protection, small and medium jewelry suppliers might expose to various threats including payment risks. Thus receivable collection services is always an indispensable tool for the jewelry industry to recover its overdue debts. In this blog, we share a successful case where a local jewelry supplier approached iQor RMS to collect a large amount of debts from a US jewelry buyer.
Language barrier and time difference are usually the key reasons for enterprises to abort the recovery of small size overseas debt. iQor RMS' statistics, over 30 years commercial collection data base, show that the recovery rate of small size debts could be 30% higher than that of the large amount accounts. Here are two typical cases oftenly seen from non-English speaking countries.
By leveraging UK statutory demand, iQor RMS has successfully recover outstanding debt on behalf of the client, a China-Hong Kong Jewelry supplier, from a UK buyer.
The US-China trade war has intensified while the US announced to raise tariffs from 10% to 25% on US$200 billion of Chinese goods. The ripple effects severely hit on exporters, industrial supply chain, and also logistics companies. iQor RMS has dealt with a case involving a Chinese apparel manufacturer affected by the trade conflict recently.
Photo by Jeffrey Swanson on Unsplash
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