Assured Debt Recovery Recovers $500K Debt Within 24 Hours

Background

A prominent construction firm (the client) approached Assured Debt Recovery with an urgent need to recover an outstanding debt of $500,000 from a subcontractor. The debt had been overdue for 6 months, causing cash flow issues for the client. Despite multiple follow-ups, the debtor had not made any payments, citing disputes over contract deliverables.

The client provided all necessary documentation, including the signed contract, invoices, email correspondence, and proof of completed work. They emphasized the urgency of the situation, as their operational continuity depended on the recovery of this amount.

Strategy and Execution

Step 1: Immediate Case Assessment

Assured Debt Recovery prioritized the case as urgent. Within an hour of receiving the client’s documentation, the team conducted a thorough review to confirm the validity of the debt.

Key findings:

• The contract clearly outlined payment terms, with no legitimate grounds for withholding payment.
• The subcontractor had a history of delaying payments but was financially solvent based on public records.

Step 2: Immediate Contact with Debtor

Using a strategic approach, Assured Debt Recovery initiated contact with the debtor:

• Written Notice: A formal demand letter was sent via email and courier, clearly outlining the legal repercussions of non-payment.
• Direct Call: Within two hours, a senior negotiator contacted the debtor, explaining the potential costs of legal action and reputational damage.

Step 3: Escalation Tactics

The team leveraged its legal network to prepare a pre-litigation notice. This was shared with the debtor, emphasizing the expedited legal actions that would ensue if payment was not made immediately.

Resolution

Within 12 hours, the debtor acknowledged the legitimacy of the debt and agreed to a payment plan. Assured Debt Recovery, however, insisted on an immediate transfer of the full $500,000, citing the client’s urgent financial situation and the potential escalation of costs.

By the 24th hour, the full amount was transferred into the client’s account.