Collection Services
Credit Rating Information and Collection Services
The US is one of the most important trade partners for German companies. Unfortunately, a client is sometimes delayed in paying an invoice or simply does not pay at all. The German American Chamber of Commerce of the Southern US provides support to German companies in handling these matters by providing services such as risk-assessment and assistance in the collection of due notices from defaulting debtors in the US.
Credit Rating Information
In new business relationships, the partner companies are often unfamiliar. However, many arrangements of these partnerships are legally secured through contracts, which achieve mutual trust between the companies. Someone can rarely accurately assess the risk of business based merely on its formal appearance at a trade fair or office location.
In order to avoid profit loss and evaluate the risk of a business relationship, one must be thorogh in accessing extensive information about the company that is not available with just a simple inquiry. Therefore, we can obtain a credit report of business partner, so you are able to review there credit rating and history of payments.
Collection Services
There are numerous reasons why US companies may default on payments. In many cases, misunderstandings involving the incorrect contact person or language difficulties are main causes for non-payment. In other instances, the distance from Germany is the problem. Some debtors believe they are not within the jurisdiction of German creditors and are therefore relieved of their financial obligations. Experience has shown that this is actually not the case.
The efforts of the GACC South are designed to achieve an out-of-court settlement of debt cases, presenting a cost-effective method for companies to collect payment. Litigation is quiet costly in the US and even with a successful verdict, the plaintiff is often held responsible for the costs. Generally, lawsuits are advisable only once the claim reaches a sum of $130,000 or more.
Overview of Advantages of Working with the GACC South
- As a Chamber of Commerce we assume a professional, unbiased mediation role to objectively resolve potential misunderstandings between the debtor and creditor.
- We are located in the US, which allows us to put more pressure than with collection letters and efforts from Germany.
- Our professional staff utilizes its knowledge of German and American business culture to efficiently handle your case.
- In the event of bankruptcy filings or other legal proceedings, we can provide assistance to the creditor by helping you find a German-speaking lawyer.
- In addition to a low initial fee, commissions apply only in successful collection cases.
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