Having openly boasted to our client about being cash-rich with money to burn and the planet to save, this London-based venture capitalist firm soon found themselves in hot water overpayment. Their offices may only be six stops apart on the Central Line, but the debtor and our client are worlds apart in how they approach doing business. Our client has operated in the ultra-competitive recruitment industry for over twenty years, trading on its reputation. The debtor has taken a very different approach since starting up five years ago. With little previous experience in the sector and substantial personal wealth, their business depends on hiring staff with a proven track record in making environmentally conscious investments.
False Promises
Despite the hype and promises, our client was still waiting for their £13k months after filling the vacant senior manager position. Having learnt the value of fastidiously vetting candidates before sending them to interview, there was little chance of this one being anything other than a good fit. The debtor repeatedly assured our client the placement was a success, maintaining a steady flow of compliments and several promises of payment. After four months of fruitless pleasantries and for fear of being made a fool, the client instructed Advocate Commercial Debt Recovery.
Debt Recovered in Three Weeks
Initial debt recovery research by Advocate found that at the time, venture capitalist had been bragging about having money to burn, but they were indeed burning circa. £1m of the money! This was largely attributable to two investments failing in six months, leaving liquidators to clear up the mess. We quickly established contact with their FD, who immediately proposed payment over three months. Having already spent four months chasing the £13k, our client could not wait any longer and refused. Claiming to ‘know debt collection’ the FD was of the view they could get a Judge to agree a token payment plan taking several years if the client did not reconsider. Having tactfully corrected the FD’s understanding of commercial debt recovery, we enlightened them on the swiftness at which Judgment can be obtained and the speed at which High Court Enforcement Officers could attend! With the FD now up to speed on realistic expectations, negotiating a more suitable payment plan was achievable to clear the £13k plus statutory late payment charges. The client had already informed us they would be prepared to accept payment over a maximum of six weeks because of the impending VAT return. However, we surpassed expectations and agreed to payment over three weeks. The client was delighted, and HMRC got paid with time to spare.