Information Delivery

Your location： home Information Delivery

How to collect debts of small amount by non-litigation measures in China

 

International litigation is time and money costing. Clients are likely to give up if the claim is of small amount due to the complicated process and high cost of international litigation.

 

Recently we have a client from Czech who prepaid USD10 000 to a Chinese supplier. But that supplier would like to change their agreed payment term after receiving the down payment. Client didn’t agree so the supplier refused to ship. Therefore client demanded refund of the prepayment but the supplier stopped talking.

 

After search we found that the supplier has official shop on alibaba.com. They also have pictures of their factory gate and the person in charge who was on a show. Obviously they are trying to build up an image of well reputation.

 

We got connected with the person in charge of the supplier. They were convinced to refund when we mentioned the potential complaining on the platform of alibaba.com. Before they commenced the bank transfer they also requested us to show the Power of Attorney. Finally the supplier fully refunded the USD10 000.

 

In another case we found the supplier is under the process of winding up his company. The company has to settle all of its credits and debts before winding up according to Chinese company law. So we negotiated with the supplier by informing our future action of stopping the process of winding up if he refuses to refund. That case was over USD20 000 and we succeeded too.

 

Non- litigation measures of debt-collecting include different ways depending on each case. The key point is to find out the weakness of the other party.  Lawyers have resources to check their information to analyze and find out what’s their concern.

 

In addition to the basic incorporation information lawyers can find the record of lawsuits, payment of the registered capital, shareholders information, investment and so on. From the bank information it also can be told out if they are using off-shore company.


 


 


相关内容