WHAT IS INTERNATIONAL DEBT COLLECTION?

HOW DO YOU OPERATE?

IN WHICH COUNTRIES DO YOU PROVIDE YOUR SERVICE?

HOW DO WE START USING YOUR SERVICE?

WHAT IS YOUR SUCCESS RATE?

HOW DO WE PAY FOR YOUR SERVICE?

WHAT IS NO CURE NO PAY?

WHAT DO YOU NEED TO START A COLLECTION CASE?

HOW CAN WE CHECK PROGRESS ON A CASE?

Frequently asked questions

What is international debt collection?


Organizations engaged in international business activities regularly experience clients not timely paying their outstandings. When they start looking for assistance they are often confronted with several hindrances. High advance fees, cumbersome administrative requirements, and lengthy legal procedures without any guarantees render it not cost-effective to leave it up to law firm. Especially if the outstanding amounts are not too high, amicable debt collection can turn out to be an attractive alternative. The methods used by companies offering international debt collection vary to a large extent. Find out how we have designated our collections service below, or drop us an email (info[at]modern-debt.com)




How do you operate?


We have built a collection procedure consisting of several different steps. Wth every step comes a dunning letter which we issue in the language of the debtor (we currently offer 26 languages). These letters are sent out by email, fax, and in specific cases by postal service too. During the entire process we make several attempts to reach out to the debtor by phone. Once we have established contact with the debtor we will attempt to come to a quick solution. The basis of our service is to lower payment barriers. From the one hand we offer all sorts of (online) payment options, varying from wire transfers, credit card, to Bitcoin. In case of large oustanding balances, we will offer repayment in instalments and will make the debtor sign a settlement agreement. In these cases we monitor adherence till the end of the repayment schedule. In case a hotel eventually does not pay they wil registered on our international delinquent list. The hotels are informed about this step, and we leave them the choice whether or not to remain listed. This list is regularly consulted by our clients to check for payment discipline of any new hotels and organizations they wish to sign up.




In which countries do you provide your service?


Practically we can offer our service in any country. Throughout the years we have successfully collected invoices in over 130 different countries all around the globe. Our procedures are tailored to collect from hotels in any country and our dunning letters are therefore available in over 25 different languages. In case of necessity to prepare for legal proceedings in any specific country we can rely upon a network of partner law firm who can assist and arrange to prepare for litigation




How do we start using your service? What are your options?


Depending on the requirements of your organization, we offer several different options to start working with us. 1. If you just want to use our debt collections service for a single case, you can let us know and we will agree on a commission rate and just start our procedure. 2. In case you expect to make use of our service for just a couple cases each month, you can opt for our 'Incidental Package'. You can send us up 25 cases max every month against a fixed commission rate of 12%. 3. When your organizations has to deal with relatively high volume of unpaid invoices each month, consider to sign up for our 'Regular Plan'. Especially due to the higher volume we can offer lower commission rates. 4. Some of our clients had requested if we could come up with a more comprehensive package including our entire array of services. We therefore recently introduced 'Accounts Receivable Management'. You can send us unlimited invoices each month without paying a commission fee. Just a fixed montly fee is due. 5. You can also just trial our service free of charge for a maximum of 10 cases. You will gain temporary access to our case management system, and no commission will be due upon collection. More information HERE




What is your success rate?


The average success rate is every year around 40%. 2/5 invoices assigned to us we successfully collect. Our total average success rate over 2019 was 41.8%




How do we pay for your service?


Every end of the month you receive an invoice from us stating the total commission due. We accept payments via wire transfers, credit card, and several other online payment options. If you are using our full accounts receivables management, you are billed quarterly.




What is no cure no pay?


No-cure-no-pay simply entails that you only pay us when we successfully collect your invoices. No payment is required for any further services.




What are the requirements to start a collection case?


In order to start a collection case we need to receive the following basic details: 1. Any document corroborating a debt e.g. invoices, contracts/agreements, or any other written document directly indicating a debt is due. 2. Details of the debt i.e. total outstanding balance, date of debt, and if necessary a short explanation on how the debt was incurred. 3. Full name of debtor including all available contact details, and if possible any correspondence with debtor relating to the debt. These can submitted on a case to case base, or in case of bulk assignments in for example an excel sheet.




How can we check progress on a case?


All our clients receive access to our case management system. You can track all developments on a case to case basis. Within the system all communications with a hotel is logged and you can for example view copies (pdf) of all letters which have been issued. Also, any payments received are entered in the system and you will receive automated notifications upon payment.




What happens if a debtor does not pay at the end of a collections procedure?


Once our collections procedure ends and a debtor has not responded or started repaying the debt, we will list the debtor on our international delinquent list. This list can be consulted by our clients for credit and risk purposes. The detterence for the hotels is big and not rarely results in last minute payments. In addition, and depending on the outstanding balance we will give our clients the choice to explore any legal options in the country of debtor.




Do you also provide legal services?


In particular case, and upon our clients' special request we can arrange for legal procedures. We are developing this service across several countries and will soon update our clients on further options.




Are there any limits to the volume of cases of the outstanding amounts you can collect?


No, there is no limit to the maximum amount of cases we accept each month. We have different packages though which we allow for a fixed or unlimited number of cases and invoice amounts. Automatically, our premium packages have no limit to the monthtly volume and/or outstanding balances you wish to collect. For more information check our pricing and plans HERE




How do we know your services and actions are legitimate and your clients indeed assigned you to collect on their behalf.


For every case our clients send us, they send us an official assignment. In order to verify our official involvement you can either contact us so we will send you proof, or you can ask for confirmation directly from our clients. If you are unsure whom to request this information from you can always ask us for further contact details.




How does specialized debt collection for the hospitality sector look like?


Since we have been established we have collected outstanding debts from over 225.000 hotels all around the world. We maintain a large database with the contact details of those persons responsible for payment in the finance- and account payable departments. In addition, we are very well accustomed with the complaints and issues which are causing late payments: e.g. invoice corrections due to guest no-shows, contractual disputes about commission rates, or misunderstood agreements on corporate programs. Part of our added value is that a vast proportion of the hotels worldwide signed up by OTAs have once received a letter from us. Also most of the large hotel chains know about our existence and they naturally want to avoid our involvement. Also we are very well aware of the delays caused by payments systems like Onyx, Pegasus etc. and know how to act when payments got stuck or lost in between different channels.





Modern Debt International

Wycker Brugstraat 17b

6221 EA Maastricht

The Netherlands

T: +31 43 302 0310

F: +31 84 837 3051

info@modern-debt.com

COC: 14096409 Tax: NL140603256B01

©2020 by Modern Debt International.