Successful Debt Recovery for CYMK Inks and Coatings Private Limited

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Client Overview:

CYMK Inks and Coatings Private Limited, faced financial and operational stress due to 14 overdue invoices, totalling approximately Rs. 1 Crore. Each account had been outstanding for an average of 3 years and more, creating financial strain, severely impacting the company’s cash flow, growth potential, and the mental well-being of its leadership. In need of a strategic and ethical recovery solution, CYMK Inks and Coatings engaged Taurus Collection, a specialized debt recovery firm based in Mumbai, known for its commitment to ethical debt recovery and client-centric approach to manage these complex cases.

Challenge:

Aged Debt: The invoices had been outstanding for an extended period, with an average age of 3 years, making recovery efforts more challenging This long-standing debt created immense pressure on the company’s cash flow, hindering their ability to invest in new growth opportunities and resulting in increasing stress.

Substantial Total Value: The combined value of the 14 accounts was a significant Rs. 1 Crore, representing a considerable financial burden for the client.

Varied Debtor’s Response: The debtors’ responsiveness varied, with some being completely unresponsive while others broke repeated promises of payment.
Cost Constraints: CYMK Inks and Coatings was looking for a cost-effective solution to resolve these challenges without adding further financial burden during this period.

Taurus Collection’s Strategic Approach:

Initial Communication and Legal Notices:
- Ethical Intimation and Warning Letters: Taurus Collection began by issuing intimation letters to all 14 accounts, followed by warning notices to nine particularly challenging cases. These communications emphasized the seriousness of the matter and the potential legal consequences of continued non-payment. All while maintaining professionalism and ethical responsibility. This established the seriousness of the situation without resorting to aggression or undue pressure.
- Legal Demand Notices: For the four most resistant accounts, legal demand notices were issued, underscoring Taurus Collection’s commitment to pursuing the matter through legal channels if necessary.
- Police Complaints: In two cases where the debtors continued to evade payment despite multiple notices, police complaints were filed to escalate the matter further.
Comprehensive Multi-Channel Notice Delivery:
- Multi-Channel Distribution: To ensure that the notices were received and acknowledged, Taurus Collection delivered them via multiple channels, including email, WhatsApp, and courier. This comprehensive approach maximized the chances of reaching the debtors and prompted a response.
Field Collection Agents and Ethical Field Visits:
- Strategic Visits: Field visits were conducted when debtors were unresponsive, broke payment promises, or were otherwise unavailable. Handled with utmost professionalism, these visits allowed Taurus Collection to maintain pressure on the debtors and reaffirm the seriousness of the recovery efforts.
Consistent Communication:
- Negotiation and Connectivity: Taurus Collection maintained continuous communication with 80% of the debtors, working towards a negotiation point that would satisfy both the client and the debtors. This consistent engagemen facilitated partial payments and secured commitments for future payments without damaging relationships or applying unethical pressure.

No Collection, No Fee Policy:
- One of the key differentiators of Taurus Collection’s approach was the “No Collection, No Fee” policy. CYMK Inks and Coatings did not incur any upfront costs for the recovery process. They were only required to pay a fee after Taurus Collection successfully recovered what was owed to them. This ensured that the client faced no additional financial risk, making the recovery process stress-free and completely performance-based.

Results:

Recovered Amount and Improved Cash Flow: Taurus Collection successfully recovered Rs. 21 Lakhs from eight of the 14 accounts. This recovery significantly alleviated the financial strain on CYMK Inks and Coatings, improving their cash flow and enabling them to refocus on business growth.

Secured Future Payments: An additional Rs. 27 Lakhs was secured through ongoing payment arrangements, expected to be cleared within a year. This arrangement provided the client with a clear timeline for full recovery of the outstanding amounts, reducing their stress and allowing for better financial planning.

Client Satisfaction: The client was highly satisfied with the recovery efforts. With our ethical approach and the “No Collection, No Fee” policy, CYMK Inks and Coatings was able to resolve long-standing debts without incurring upfront costs. The leadership team experienced reduced stress, improved mental well-being, and renewed energy to focus on core business operations and growth.

Conclusion:

Taurus Collection’s strategic, ethical and multi-pronged approach to debt recovery—encompassing legal action, experienced communication, and strategic field visits with a ‘No collection, No Fee’ policy —proved highly effective in managing the aged and substantial debts of CYMK Inks and Coatings Private Limited. The successful recovery of Rs. 21 Lakhs, along with secured future payments, not only alleviated the client’s financial burden but also reinforced Taurus Collection’s reputation as a trusted partner in debt recovery. The successful recovery, combined with ethical handling and client-centered policies, allowed CYMK Inks and Coatings to refocus on business growth and reinforced Taurus Collection’s reputation as a trusted and compassionate partner in debt recovery.

Successful Debt Recovery for CYMK Inks and Coatings Private Limited

Client Overview:

Challenge:

Taurus Collection’s Strategic Approach:

Results:

Conclusion:

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