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.
A jewelry buyer in California purchased USD 1 million worth of jewelry goods from our Hong Kong client. Unfortunately, the buyer was unable to pay the overdue amount claiming financial difficulties and deception by other merchants. Suspecting being deceived by the buyer, our client sought help from iQor RMS for collecting the debt. With more than 30 years of professional experience in practical debt collection, iQor RMS promptly took actions, starting with multiple negotiations with the buyer and also in view of the huge size of the debt, iQor RMS leveraged its attorney network to effect paralegal services, which is executed in conjunction with the third party collection, so as to intensify the pressure on the buyer. The buyer then contacted us as soon as receiving the paralegal letter, and provided proofs of financial difficulties and the grounds of being cheated by the other merchant. iQor RMS immediately investigated and assessed the buyer’s financial situation and verified the proofs were genuine.
In order to achieve a win-win situation, iQor RMS eventually negotiated with our client and the buyer to reach an agreement, resulting that the buyer would pay off the debts in instalments. The buyer was able to avoid bankruptcy, whereas our client avoided paying expensive legal fees and facing payments delay due to litigation. To date, the buyer has already got out of the woods and keeps operating, credited to iQor RMS professional and practical experience, bringing a win-win situation to both sides.
The purpose of debt collection is to effectively recover the debt with the least amount of time and resources. It is not right to use a single tactic and blindly apply to all scenarios. For example it is not necessary to put the case to the court every time or force the other party to bankrupt nor to employ third party collection alone without investigating the debtor’s financial situation.
The professional iQor RMS team truly understands the underlying problem and customizes the best solutions as per case and client needs. Knowing how to find a right balance in between two parties to reach a mutual agreement, will truly bring the maximum benefits to the clients.
A point to note: Paralegal Services is a highly popular tool used in the United States, to employ this device wisely in parallel with third party collection will greatly enhance the recovery of large size debt in US.
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