Escalate and Capitalise launch ‘Capitalise Recovery’ to tackle SME bad debt

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, who have 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.”