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.
After receiving the goods, the UK buyer owed a payment of about US$500,000 which was caused by financial difficulties, who had then and promised the client to repay the loan within two months. However, the UK buyer had delayed the payment for months and also did not respond to the client’s collection demand. There was still no progress after nine months while at the same time, the client had found that the buyer’s store in UK was still operating for day to day business. The client then sought help from iQor RMS for collecting the debt.
iQor RMS HK and our British partner contacted the UK buyer for negotiation, but the debtor had various excuses for extension. After investigating and assessing the UK buyer’s financial situation, we consider that the debtor is in good repayment ability but deliberately default on the payment. We then advise our client to collect the outstanding through statutory demand. The statutory demand is a powerful tool for commercial debt cases in the UK as it is quick and cost-effective.
After obtaining the client's consent, our local lawyer issued the statutory demand and served to the debtor. Upon receiving the statutory demand, the debtor has 21 days to settle the debt and reach an agreement for payment with the creditor. The UK buyer has not responded to the statutory demand in 21 days, our lawyer partner then apply to bankrupt the debtor. As a result, the UK buyer contacted our lawyer as soon as they received the bankruptcy petition. The debtor proposed a repayment agreement by selling the property and proceed to make payment. After two months, our client finally received the payment which was overdue for more than a year. Our client appreciated the professional advice provided by iQor RMS.
Taking legal action against a defaulted foreign partner could be a puzzle for many businesses, when considering the time factor, cost effectiveness and the legal know-how. In many countries, there are local laws to protect traders from losses while overseas creditors may not have a full understanding of their rights under these laws.
iQor RMS offers debt collection services with a network of global partners and lawyers. By leveraging iQor RMS collection know-how, professional advice and combining the appropriate legal actions will tremendously help client to enhance the chance for recovery.
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