Why Sell Your Claim?

If you or your company are owed money by an insolvent company, please contact ClaimCloud to understand if your claim can be sold. Some considerations for contemplating selling to ClaimCloud include:

Time

It is not uncommon for creditors to have to wait years for a financial conclusion to their claim. The period of time is not always predictable and could be longer than you expect.

A 2021 study of insolvencies showed that the median duration of a winding up since 2008 was approximately 2 years.

Uncertainty

The recovery that you will receive on your claim can be highly uncertain, with numerous factors at play:

  • The value of the insolvent company’s assets is often severely reduced in an insolvency;

  • The claims of priority creditors (such as administrators’ fees, legal fees and employee entitlements) will always rank ahead of unsecured claims; and

  • Secured creditors such as banks can also diminish any returns available to unsecured creditors.

A sample of Australian insolvencies noted that 87% of all company administrations see a return of 30c in the dollar or less.

Distraction & Stress

Selling your claim to ClaimCloud allows you to be free of the distraction caused by having outstanding monies owed to you by a failed company.

If a business owner or management team is continually distracted by the issue, the company can lose twice: once from the primary financial loss, and then by the opportunity cost of not being focussed on the core business.

Harris, JR (Aug 2021) ”Promoting an Optimal Corporate Rescue Culture in Australia: The Role and Efficacy of the Voluntary Administration Regime”