RMS 8 Major Standards Fast Debt Collection Process
RMS tailored Debt Collection Process for SMEs: Efficient, Compliant, Transparent
Commission and Data Collection
The client provides proof of debt (such as contracts, invoices, or statements of account). RMS then conducts a feasibility assessment and signs a mandate agreement.
Gentle Reminder Phase
RMS sends polite collection letters, emails, and makes phone calls to remind the debtor of the outstanding payment, maintaining a non confrontational approach.
Formal Demand Letter Issued
If there is still no response, RMS issues a formal demand letter clearly stating the payment deadline.
Intensive Telephone and Multichannel Follow-up
RMS conducts daily or weekly collection calls, supported by WhatsApp, email, and SMS outreach to increase pressure while maintaining full compliance.
Repayment Plan Negotiation
RMS negotiates with the debtor on instalment arrangements, interest reductions, or a lump sum settlement to achieve an out of court resolution.
Lawyers' Alliance
Hired a lawyer to issue a formal Legal Demand Letter warning of upcoming legal action.
Initiate Legal Proceedings
If all prior efforts remain ineffective, RMS can proceed on behalf of the client to file a civil lawsuit or submit a bankruptcy petition, enabling the court to freeze assets or seize property as appropriate.
Enforcement and Recovery
After obtaining a court judgment, RMS proceeds with enforcement actions. The court may seize and auction assets or garnish wages to complete the recovery of funds.
Managed entirely by the RMS Hong Kong team, giving SMEs a single point of contact to track all progress.
Specific execution tasks for RMS at each stage
RMS offers professional and transparent SME Debt Recovery services for small and medium-sized enterprises. The following details the actions for each stage:
Phase 1: Commissioning and Data Collection
- Receive client debt documents and evidence
- Project Feasibility Assessment (Success Rate Prediction)
- Sign the Letter of Engagement and Confidentiality Agreement
- Establish a dedicated case file and progress tracking system
Stage 2: Gentle Reminder Phase
- Send polite collection emails and text messages
- Call the debtor to confirm the debt and understand the reason.
- Record all communication content and debtor's responses
- Provide payment instructions and bank details
Stage 3: Formal Demand Letter Issued
- Draft and send formal collection letters (Chinese/English)
- Clearly set repayment deadlines and follow-up warnings
- Use registered mail or certified mail for proof of delivery
- Follow up with the debtor's response and record it.
Step 4: Intensive Phone and Multi-Channel Follow-up
- Multiple phone calls daily/weekly
- Use multiple channels such as WhatsApp, WeChat, and email
- Negotiate installment payments or a concession plan
- Update client progress report (weekly/monthly)
Phase 5: Repayment Plan Negotiation
- Develop a personalized repayment plan
- Draft a repayment agreement and facilitate its signing
- Monitor repayment progress and remind debtors
- If you default, you will proceed to the next stage.
Step 6: Demand Letter and Legal Notice
- Engage a cooperating lawyer to issue a formal legal demand letter.
- Warning: Legal action or bankruptcy filing is imminent.
- Gather information on the debtor's assets in preparation for subsequent enforcement.
- Continue to attempt an out-of-court settlement
Stage 7: Legal Proceedings
- Initiate civil claim in Hong Kong courts
- Apply for a temporary injunction or asset freeze (where applicable)
- Represent a client in court or provide evidence
- Seek a quick judgment
Stage 8: Enforcement and Recovery
- Apply for a writ of execution, seize, and auction the debtor's assets
- Bank attachment or wage garnishment
- Collect payments and transfer to client (less commission)
- Provide final project completion report
The most frequently asked questions by small and medium-sized enterprises (SMEs)
Here are brief answers from RMS, a Hong Kong debt collection company, to common concerns from small and medium-sized enterprises.
Will hiring a collection agency affect my relationship with my clients?
No. RMS adopts a gentle and professional approach, prioritizing the negotiation of repayment plans. Most cases are settled out of court, preserving future cooperation opportunities.
What is RMS's commission fee structure?
Adopts a "success fee" model (No Collection, No Commission): Commission is only charged if payment is successfully recovered. The specific commission fee will depend on the difficulty of the case and will be clearly explained before authorization. (Detailed commission fee model → Click here to view）
Do I need to send a lawyer's letter? Is it expensive?
It depends on the situation. RMS can issue professional Legal Demand Letters at an affordable and transparent price. These letters are often effective in prompting debtors to repay without requiring court action. (Legal Demand Letter Service Details → Click here to view）
Will my customer information be leaked during the collection process?
Absolutely not. RMS strictly adheres to Hong Kong's Personal Data (Privacy) Ordinance, and all information is used solely for debt collection purposes and is encrypted throughout the process.