Escalate, the multi-award-winning commercial dispute and bad debt resolution service, has teamed up with adviser-led funding platform Capitalise.com to proactively help SMEs affected by the fallout from the Coronavirus crisis with their cashflow.

Capitalise.com, which has partnered with over 1,800 accounting firms, has incorporated Escalate into its business health-check service and launched Capitalise Recovery. Where credit control ends, Capitalise Recovery will allow accountants to pursue bad debt for their clients prior to being written off. Given the current environment, providing clients with the ability to recover bad debts is a simple way to safeguard their own balance sheets.

Escalates provides Capitalise Recovery with an end-to-end debt recovery service, which removes the hassle and financial risk for clients while prioritising a successful outcome. Unlike traditional debt recovery solutions, which typically get bogged down if the defendant disputes the claim, Escalate is fully funded to take a case all the way to the High Court if necessary, with any potential adverse costs covered too. This not only enables us to employ a broader range of negotiating strategies but also considerably strengthens our bargaining position to maximise the likelihood of getting the client’s money back.

 

Removing the hassle and financial risk involved in typical debt recovery

Escalate has already helped to unlock nearly £100 million of cash for businesses from bad debts and other types of commercial disputes, and has seen growing demand from SMEs struggling to get paid during the Coronavirus crisis. The partnership with Capitalise will make it even easier for companies, working with an accountant, to identify and recover the money owed.

Chris Clay, the Managing Partner of Escalate, said: “Bad debts are a major headache for SMEs even in normal circumstances, with Xero estimating that over £131 billion was tied up in late payments last year. The current liquidity squeeze has intensified the problem and raised the stakes for SMEs – many are running out of cash because they’re not being paid, and that’s putting jobs and the businesses themselves at risk.

“Not surprisingly, a growing number of SMEs are getting in touch to ask for help with unlocking cash from their balance sheets.  We want to make the process as simple as possible for them, which is why creating Capitalise Recovery is so important.

Paul Surtees, Co-Founder of Capitalise, said: “We recently surveyed our clients about the impact of the Coronavirus on their businesses, and the response we received was very clear:  bad debts and commercial disputes are going to rise and business owners are keen to get help to recover the money that they’re owed.

“We’ve already been working closely with Escalate for a couple of years, so integrating its debt recovery service was an obvious next step.

“Our mission at Capitalise.com is to make it easier for businesses to build  and maintain strong balance sheets. Through funding, we provide the fuel to grow and thrive. Through Recovery, we provide the tools to reclaim what is owed and the power to challenge disputes.”

 

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CONTACT US

Contact Us to find out more about how Escalate can help your business.

Our registered address:
Exchange Station, Tithebarn Street, Liverpool,
L2 2QP

Escalate Law Limited
Company No: 10381993

The issue of late payments and other unresolved commercial disputes is rarely out of the news at the moment.  And for good reason.

Accounting software provider Xero estimates that SMEs have £131 billion tied up in late payments, while Pay.UK revealed that SMEs spend £4.4 billion each year collecting the money they are owed. Our latest survey paints a similar picture: we found that 96% of SMEs have experienced a bad debt in the past 12 months, with 60% percent stating that the late payments they experience are a serious issue for them; 42% believe that late payments put their business’ future at risk.

So the problem is well documented. 

But what about the solutions? How can we start to drastically bring these figures down? 

At Escalate, our focus is all about resolving late payments, bad debts and commercial disputes.  That’s why we’re helping SMEs to recover £100 million to SMEs which would have previously been written off.  So here is our advice on what to do if you face a late payment or bad debt:

Do your research
Get to know your client and invest some time in due diligence, whether that involves asking for references, undertaking a credit check or reviewing the client’s accounts.

Make your terms clear 
Agree expectations from the start. Many disputes arise from the fact that the parties involved did not take time to discuss their expectations at the start of the process. Clearly state your payment terms and other important points up front and avoid leaving any room for doubt later on. 

Document as much as possible 
Having a paper trail of important decisions can act as a reminder of the agreements made, providing evidence to bring both sides back on track. Comprehensive paperwork is also likely to help in a court case.

Address issues early 
The old adage that ‘a stitch in time saves nine’ applies here. A potentially tricky conversation early on can prevent a problem from growing in a complex legal case that will cost everyone time and money.

Understand the background 
Talk to the client to better understand the reasons for the issue. Building a relationship with the client may also provide them with an added incentive to prioritise your concerns.

Be firm but fair 
Your business is important to you, so nobody expects you to give in at the first sign of a disagreement. But don’t let your emotions cloud your judgements. Don’t make things personal. Step back and use an impartial observer, if needed.

Get an expert involved 
If you feel that the other party is unlikely to change its mind, it may be time for expert advice. This is exactly why we created Escalate. If you have already suffered financial losses, don’t automatically assume the costs of recovery outweigh the benefits.

If your business is struggling with bad debts, late payments or another type of commercial dispute, remember that there are solutions and writing-off should no longer be necessary.  Please get in touch…

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UHY Hacker Young joins Escalate dispute resolution platform

UHY Hacker Young in the North West, one of the region’s leading accountancy firms, has become the...

CONTACT US

Contact Us to find out more about how Escalate can help your business.

Our registered address:
Exchange Station, Tithebarn Street, Liverpool,
L2 2QP

Escalate Law Limited
Company No: 10381993