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.
iQor RMS HK stepped in the case last year and a series of demand letters including pre-court notices were issued to intensify the demand for payment. Leveraging iQor RMS global network, professional and well-trained collectors who are well versed with local language, culture, and legal business practice further accelerated the collection effectiveness. After numerous negotiations, a settlement plan of over 80 percent of the original debt amount was reached and the buyer eventually had made payment according to the payment plan within 6 months, while the entire process to be monitored and managed by iQor RMS.
Electronics orders always come in huge amount that exporters should be aware of their customer’s cash flow and payment patterns. Late payments from customer could lead to poor cash flow and the worst case could run into company winding up and directors’ bankruptcy. iQor RMS global collection network in more than 190 countries together with our in-country debt collectors could negotiate effectively with overseas buyers despite of international trade barriers such as country and industry business practices, payment patterns, laws and trade regulations.
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