light brown staffing collection agency logo

Call 855-930-4343 Today!

Getting Paid for Staffing Services Rendered to Start-Ups

This article discusses the process of getting paid for staffing services rendered to start-ups, focusing on the recovery system for company funds. The recovery system consists of three phases aimed at recovering funds owed to the company from debtors. Each phase involves specific actions and decisions that can impact the outcome of the recovery process. Understanding these phases is crucial for start-ups to effectively recover their funds and manage financial risks.

Key Takeaways

  • The recovery system for company funds involves three phases: Phase One, Phase Two, and Phase Three.
  • Phase One includes sending letters to debtors, skip-tracing, and initial contact attempts to resolve the debt.
  • Phase Two involves forwarding the case to affiliated attorneys for legal action if initial attempts fail to resolve the debt.
  • Phase Three offers two recommendations: closure of the case if recovery is unlikely or proceeding with litigation with associated costs and potential outcomes.
  • Rates for recovery services vary based on the age and amount of the accounts submitted, with different percentages for collections.

Recovery System for Company Funds

Phase One

Within the first 24 hours of initiating Phase One, a multi-pronged approach is launched to secure payment from the debtor. Immediate action is taken to ensure that the debtor is aware of their obligations and the urgency of the situation. The process includes:

  • Sending the first of four letters via US Mail.
  • Conducting skip-tracing and investigations to gather optimal financial and contact information.
  • Engaging in persistent communication efforts, including phone calls, emails, text messages, and faxes.

Daily attempts are made to contact the debtor during the initial 30 to 60 days. This intensive period is critical for setting the tone of the recovery process and maximizing the chances of a successful resolution. If these efforts do not yield results, the case escalates to Phase Two, involving our network of affiliated attorneys.

Phase Two

Upon escalation to Phase Two, the focus shifts to legal leverage. A local attorney within our network takes the reins, drafting a series of demand letters on law firm letterhead. This step underscores the seriousness of the situation to the debtor.

The attorney’s involvement adds a layer of urgency, with phone calls supplementing the written demands. Despite these intensified efforts, some cases remain unresolved. If this occurs, a strategic decision is required.

The options are clear-cut:

  • Continue with standard collection activities, including calls and emails.
  • Transition to Phase Three, considering litigation.

Should litigation be necessary, upfront costs are transparent and predictable:

Jurisdiction Estimated Legal Costs
Debtor’s Local $600 – $700

The choice to proceed with legal action or to withdraw the claim rests solely with you, ensuring control over the recovery process.

Phase Three

Upon reaching Phase Three, the path forward becomes clear. If the likelihood of recovery is low, we advise case closure with no cost to you. Conversely, should litigation be the chosen route, upfront legal fees will apply. These typically range from $600 to $700, based on the debtor’s location.

Upon initiating legal action, our affiliated attorney will aggressively seek to recover all owed funds, including filing costs. In the event of unsuccessful litigation, rest assured, you owe nothing further.

Our fee structure is straightforward and competitive, incentivizing successful collections. Below is a summary of our rates:

  • For 1-9 claims:

    • Accounts under 1 year: 30%
    • Accounts over 1 year: 40%
    • Accounts under $1000: 50%
    • Accounts with attorney involvement: 50%
  • For 10+ claims:

    • Accounts under 1 year: 27%
    • Accounts over 1 year: 35%
    • Accounts under $1000: 40%
    • Accounts with attorney involvement: 50%

Choose wisely, as the decision to litigate or withdraw will significantly impact your recovery process. Our team is ready to guide you through this critical phase.

Recovery System for Company Funds

What is Phase One of the Recovery System for Company Funds?

Phase One involves sending letters to debtors, skip-tracing, investigating debtor information, contacting debtors via various methods, and attempting to resolve the matter within 30 to 60 days.

What happens if recovery is not likely in Phase Three?

If recovery is not likely, the case may be recommended for closure, and the client owes nothing to the firm or affiliated attorney.

What are the options if litigation is recommended in Phase Three?

The client can choose to proceed with legal action by paying upfront legal costs or withdraw the claim with no obligation to pay. Standard collection activities may also continue.

What are the rates for debt collection in Phase Three?

Rates vary based on the number of claims and age of accounts, ranging from 27% to 50% of the amount collected.

What actions are taken in Phase Two of the Recovery System?

In Phase Two, the case is forwarded to an affiliated attorney who sends letters demanding payment, contacts the debtor, and provides recommendations for the next steps if resolution is not reached.

How are legal costs handled in Phase Three if litigation is pursued?

If litigation is pursued, the client is required to pay upfront legal costs, which typically range from $600.00 to $700.00, and if the collection attempts fail, the client owes nothing to the firm or affiliated attorney.


More Posts

Securing Payment for Last-Minute Staffing Cancellations

Securing Payment for Last-Minute Staffing Cancellations is a critical challenge for businesses seeking to maintain operational stability and financial integrity. This article explores the multifaceted approach to managing the risks associated with such cancellations, including understanding the potential impact, implementing proactive measures, and navigating through a structured recovery system. It

What to Do When a Big Client Misses a Staffing Payment

When a big client misses a staffing payment, it can send ripples through your business’s financial stability and cash flow. Handling such a situation with tact and efficiency is crucial for maintaining a professional relationship while ensuring recovery of the owed amount. This article outlines a systematic approach to dealing

Handling Unpaid Overtime Claims in Staffing Contracts

Unpaid overtime claims can be a complex issue in staffing contracts, often requiring a careful navigation of legal frameworks, factual investigations, and strategic decision-making. This article provides a comprehensive guide on how to handle such claims effectively, outlining the legal foundations, assessment methods, resolution strategies, financial implications, and the role

Chasing Payments for Short-Term Staffing Projects

When managing short-term staffing projects, prompt payment is crucial for maintaining cash flow and financial stability. However, despite best efforts, sometimes payments become overdue, necessitating a structured approach to debt recovery. This article discusses the intricacies of chasing payments for short-term staffing projects, focusing on the recovery system, the feasibility