How a Ukrainian company achieved a satisfying settlement
The Ukrainian company had done everything they needed...
May 02, 2021
A Ukrainian software company faced a major financial setback when a commercial property company in Saudi Arabia failed to pay for completed work, despite full delivery according to the Statement of Work (SOW) in their Client Agreement. Even after offering a discounted settlement, the Ukrainian firm received no payment and struggled to get a response from the debtor.
Turning to Payfor for Help
Frustrated by their lack of progress, the Ukrainian company entrusted Payfor with the debt collection. Payfor immediately analyzed the case, gathering all documentation to understand the agreement, the attempted settlement, and the debtor's behavior.
The Negotiation: Persistence Amid Poor Communication
Payfor’s team began reaching out to the Saudi company via email, hoping to establish a dialogue. Responses trickled in, but the debtor remained evasive, offering no clear path to payment. Despite the poor communication, Payfor continued their structured chase cycle, using consistent emails and follow-up attempts to keep pressure on the debtor.
The Breakthrough: Arabic-Speaking Negotiator Steps In
The situation reached a turning point during a final phone call. Payfor assigned an Arabic-speaking executive to handle the negotiation directly. The conversation was intense, with heated exchanges reflecting the tension built up over the months of non-payment. However, the ability to communicate in the debtor’s native language broke down barriers and brought clarity to the dispute.
The Resolution: A Settlement That Satisfied Both Parties
The negotiation culminated in an agreement on a settlement amount that both the Saudi company and the Ukrainian creditor found fair. The outstanding debt was promptly paid, and the Ukrainian company finally received their hard-earned payment. The client expressed relief and satisfaction with the outcome.
Why Payfor Succeeded:
- Cultural Understanding: Employing an Arabic-speaking negotiator to facilitate clear communication.
- Structured Approach: Systematic chase cycles with emails, calls, and multilingual outreach.
- Skilled Negotiation: Balancing firmness with professionalism to reach a settlement.
Lessons from the Case:
The Power of Native Language Negotiation
Effective communication can make or break international debt collections. By using an Arabic-speaking negotiator, Payfor was able to resolve misunderstandings and reach a settlement.
Persistence Pays Off
Despite poor communication from the debtor, Payfor’s consistent chase strategy ensured the debtor remained engaged, leading to a successful resolution.
Local Knowledge, Global Impact
With global reach and local expertise, Payfor understands how cultural nuances and language barriers can impact negotiations.
Work with Payfor for Efficient B2B Debt Collection
Payfor’s 30-day Chase Campaign uses a combination of weekly emails and daily calls to debtors, ensuring swift resolutions. Should payment not be secured within the period, our international legal network steps in to escalate the case.
Disclaimer:
This blog post is intended for informational purposes only and should not be construed as legal advice. The information provided in this post is based on general principles and may not apply to specific legal situations. Laws and regulations vary by jurisdiction and can change over time. Readers are advised to seek professional legal counsel before making any decisions based on the information provided in this blog post. Payfor Ltd is not a law firm and does not provide legal services. The company disclaims any liability for actions taken based on the contents of this blog post.
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