Common questions about assigning the claim

We buy statutory interest and compensation rights relating to invoices paid in full prior to the company becoming insolvent. It is totally separate from outstanding invoices.

Yes. Statutory late payment claims are subject to limitation periods, generally six years in England and Wales and five years in Scotland. If claims are not pursued within the relevant timeframe, they may expire, which is why assignment offers include an expiry date.

These claims have rarely been pursued because identifying and quantifying them requires specialist analysis of payment data and knowledge of the relevant legislation, which can be time-consuming and costly, and may not ultimately result in a recovery for the estate.

No, it should not. The assignment relates only to statutory interest and compensation connected to invoices that were already settled prior to the insolvency appointment. It does not affect the office holder's ability to pursue debtor recoveries, realise assets, adjudicate creditor claims, or otherwise administer the estate.

No, it should not. Debtor collection activity typically relates to unpaid invoices or other outstanding receivables. The rights we acquire relate only to statutory interest and compensation arising from invoices settled prior to the insolvency appointment and therefore sit separately from the underlying trade debt.

No, it should not. Collection agents typically pursue outstanding receivables owed to the estate. The rights we acquire relate only to statutory interest and compensation arising from invoices settled before the insolvency appointment and, as a result, typically fall outside the scope of traditional debtor collection activity.

No, it should not. The rights we acquire relate only to statutory interest and compensation arising from invoices that were already settled prior to the insolvency appointment. These rights arise from the timing of payment rather than the underlying receivable itself and are therefore generally separate from the trade debt that may be subject to assignment, factoring arrangements, or security.

As a result, they typically sit outside the scope of debtor book assignments and security taken over trade receivables.

In most cases, yes, they should. Asset sale agreements will typically specify the assets and rights being transferred to the purchaser. Statutory late payment interest and compensation rights arise separately from the underlying trade debt and are rarely identified or expressly included in asset sale agreements.

Unless the relevant sale documentation specifically assigns those statutory rights, they would generally remain with the company and therefore form part of the insolvency estate.

In practice, no. The right to interest and compensation under the Late Payment of Commercial Debts (Interest) Act 1998 is a statutory right that has accrued to the company. As an office holder, you have wide statutory powers under the Insolvency Act 1986 to sell company assets and accrued causes of action, and in practice contractual restrictions on assignment are rarely an obstacle to a sale by an office holder. In the unlikely event a restriction applies that we can't work around, that becomes our problem to resolve, not yours — the estate has already been paid at the point of assignment.

Our analysis is derived from publicly available records and payment data. We do not rely on access to the company's books, sales ledger, or internal accounting records to identify potential claims. Where supporting documentation — such as invoices or sales ledger reports — is available, it can assist the claims process, which is why we may offer a higher payment where such information can be provided.

Typically, the only requirement is execution of a short assignment agreement together with the provision of the estate's bank details so that payment can be made. No investigation or detailed analysis is required from the office holder.

Where supporting documentation — such as invoices or sales ledger transaction reports — is readily available, this can assist the claims process, but it is not required.

Once the rights are assigned, we pursue the statutory interest and compensation claims directly with the relevant counterparties. The insolvency practitioner typically has no further involvement in the process and is not expected to take any further action.

Our approach is intended to provide the estate with a straightforward realisation without requiring the office holder to pursue the claims themselves. The estate receives an agreed payment upon assignment rather than needing to commit time or resources to investigating or enforcing the claims.

Where claims are assigned without supporting documentation, we rely solely on external data sources. Where documents such as sales ledger extracts, invoices, or contractual terms are available, they can assist the claims process. For that reason, we may offer a higher payment where such information can be provided.

After the assignment, we manage engagement with the counterparty and determine how to proceed with the claim. The insolvency practitioner is not required to fund or participate in this process once the rights have been assigned.

Assignment is our preferred approach and the structure we offer in the majority of cases. It provides the estate with an immediate and certain realisation without requiring the office holder to commit time or resources, or to wait for the outcome of enforcement activity. Given the time-sensitive nature of statutory late payment claims, outright purchase is typically the most straightforward option for the estate. If you have a specific situation that doesn't fit the standard model, contact us to discuss.

Yes, regularly. We've completed assignments with insolvency practitioners across the UK. Where appropriate and with their consent, we'd be happy to arrange a call with another office holder who has worked with us before — that's often the most useful step for IPs weighing things up.