What problems do we solve?
The situations that have been identified as major threats and that we have helped our clients with are the following:
- Debt collection. Not willing to place an account for collection promptly. Many companies hold on to their overdue accounts far too long, in hope of doing an effective collection effort on their own and getting paid without having to surrender their profit by paying additional fees. Often, these companies simply don’t trust a collection agency to help them, or they think that if a third party gets involved, the company's business relationship with their debtors will end, when there’s probably room for more business. What happens is that, by operating on these assumptions, accounts grow old, cash flow is severely reduced, and there is a dramatic increase in the possibility of the account turning uncollectible. The fact of the matter is that there is no need to surrender that much profit when hiring a collection agency, and there are ways to ensure that you are choosing the right agency who will do the best collection job for you.
- Litigation. Not willing to start legal action or hiring the wrong firm. Sometimes companies are skeptical of hiring a lawyer to pursue legal action because they think they will only throw good money after bad. Often, it is believed that some lawyers will only care about initiating legal action to charge a fee, and will not even be concerned with a successful outcome to the client. Based on this, companies simply decide to write off an account instead of starting litigation. By doing so, a company excludes any possibility of collecting and immediately ends up with a loss, probably even discouraging the expansion-steps taken to gain new markets. There should be no need for accepting this immediate loss since there are ways to reliably select and hire the best law firm for your needs under the most favorable conditions that will give you peace of mind.
- Credit sales and loans. Not willing to extend loans or make credit sales, or doing it the wrong way. Many companies are terrified of making loans or credit sales in Mexico and Latin America because of the high risk of seeing their receivables turn uncollectible. They firmly believe that, if a debtor merely wishes to default, he can do so and get away with it without getting any help from the local courts. When companies assume this and turn away, they miss out on the opportunity to expand into new markets and make more profit - all to the benefit of their competitors. But then there are other companies who just proceed to do business in the southern region as business-as-usual, with total disregard to the different legal, political, economic, and cultural landscapes. These companies may come to realize late that such business should have been done differently, based on a different and conscious strategy aimed at mitigating commercial risks. Know this: there is a safe way to extend loans or sell on credit in Mexico and Latin America while minimizing the risk of loosing money.