A six-figure invoice can justify deeper investigation and legal analysis, but a large balance can also produce a larger dispute. Before placement, separate the amount owed from the amount supported by the present file.
Test five parts of the claim.
- Liability: Which entity agreed, and is there a guarantor?
- Amount: Are invoices, payments, credits and interest reconciled?
- Performance: What proves delivery, completion or acceptance?
- Defenses: What objections, offsets or counterclaims are known?
- Recovery path: Is the debtor operating, and what assets or payment sources are known?
Require a staged recommendation.
Ask the provider to distinguish initial collection work, investigation, settlement, legal review, filing and enforcement. Each stage should identify the decision required from your business.
Model net recovery, not only the commission.
Compare the assumed payment, contingency, separate legal costs and time. A lower rate does not create a better result if the proposed work is weaker, and a higher rate does not prove a higher recovery.
Decision memo for management
Summarize the supported balance, core evidence, known defenses, debtor status, proposed stages, costs requiring approval and the person authorized to settle.
Understand fees and separate costs · Compare three proposals