2 Years delayed payments recovered successfully for Motif Electric Ltd.

Client Overview

Motif Electric Ltd., a provider of electrical goods and services, was grappling with two overdue accounts. The outstanding invoices, totaling Rs.5,00,000, had been pending for 2 years. The debtors were not disputing the invoices but were simply delaying payment due to a significant reduction in their own revenues. This situation required a flexible and patient approach, prompting Motif Electric Ltd. to partner with Taurus Collection.

Understanding the Challenges

The primary challenge was the debtors’ financial distress. Their reduced revenue streams meant that a single, full payment was not feasible for them in the short term. An aggressive, all-or-nothing approach would have likely failed and could have forced the debtors into complete default. The two-year-old debt also posed a risk, as longer-standing invoices are typically more challenging to recover.

Our Approach: Strategic Payment Structuring

Our strategy was built on a flexible and collaborative model, designed to secure a partial recovery immediately while setting the stage for a complete resolution.

1. Financial Feasibility Assessment: We first engaged with each debtor to understand their current financial capacity. This allowed us to tailor a realistic repayment plan that was within their means.
   
2. Negotiating Phased Payments: Instead of demanding the full amount at once, we negotiated a phased payment structure. This approach eased the financial burden on the debtors and made them more willing to commit to the recovery process.
   
3. Securing a Partial Recovery: We successfully secured a significant payment from the debtors, immediately improving Motif Electric Ltd.’s cash flow. This demonstrated to our client that our process was working and that a full recovery was well within reach.
   
4. Ongoing Commitment: We continued to work closely with the debtors, maintaining consistent follow-ups and reminders to ensure they adhere to the agreed-upon payment schedule.
   
   

Results: A Strategic and Ongoing Recovery

Within a short period of engagement, our ethical and legal approach has already yielded a significant return for Motif Electric Ltd.

• Partial Recovery: We have successfully collected Rs.3,00,000 of the Rs.5,00,000 outstanding.
  
• Positive Momentum: The debtors are now engaged and committed to the process, with a clear path to a full recovery.
  
• Targeted Completion: We have a well-defined plan to recover the remaining balance within the next 2 months.
  
  

This case study demonstrates Taurus Collection’s ability to create and execute flexible, results-driven, ethical strategies to not just recover unpaid invoices but also maintain vendor relationships. By adapting to the unique financial circumstances of debtors, we can achieve substantial recoveries even when full, immediate payment is not an option.