What We Do
ClaimCloud buys the claims of creditors that are owed money by insolvent companies.
If you are owed at least $50,000 by a company in administration, receivership or liquidation, ClaimCloud may be able to help.
In many circumstances we are able to buy your claim from you at a discount to its face value, taking it off your hands entirely.
Rather than waiting years, with little control or certainty of a return, you can receive partial payment for your claim and strike it off your balance sheet for good.
ClaimCloud will primarily be a buyer of unsecured creditor claims but also has the ability to acquire priority and secured claims.
How it Works
If you are owed money by a company that becomes insolvent, your ability to collect the money you are owed is compromised.
In an insolvency event, the company will likely be controlled by an external administrator or liquidator who has numerous obligations and priorities to multiple stakeholders. Depending on the nature and complexity of the company, this process could take months to several years, meaning that creditors may be waiting for an extended period to receive any distribution of funds.
Instead of waiting for that unknown period of time, a creditor can contact ClaimCloud who will assess their claim against the insolvent company. ClaimCloud may provide the creditor with a choice to sell its claim at a specific price.
The valuation of your claim is made on a combination of expected recovery, risk, estimated duration of the insolvency and other circumstances that may be specific to each claim.
We recommend that you receive independent professional advice when considering selling your claim to ClaimCloud.
In any insolvency there are numerous steps that need to be worked through by insolvency practitioners before any distribution of funds is made. It is important to realise that the uncertainty relates not only to the amount of the distribution that your claim will ultimately receive, but also to the timing of any payment.
The final payout determined at the conclusion of the insolvency could be more or less than the amount paid by ClaimCloud to acquire your claim. Once you have sold your claim to ClaimCloud, you will have no further rights in respect of that claim.
An important point to remember is that when you are an unsecured creditor, you are typically ranked last in priority to have your claim paid during insolvency. This exposes you to a risk that your creditor claim is not paid (either fully or partially), if there are no funds remaining after paying higher priority claims.
Things to Consider
What You’ll Need
For ClaimCloud to assess your claim, you will be asked for information about your claim against the insolvent company.
This may include, but is not limited to, proof of debt, contracts, or other evidence of the amount owed to you.
You will also be asked to confirm your identity as the creditor who is owed money by the insolvent company.