Debtor, Creditor & HMRC Negotiation
“Win-win” is the essential attitude going into negotiation strategies and debt collecting. Two sides both have a requirement from it. Notwithstanding that, some creditors may make more “noise” than others and require special handling whilst too many “promises” may indicate the debtor is unlikely to ever pay. It is a fine balance that needs to be drawn. The client can benefit from having skilled business negotiation to close matters.
Colonnade uses a unique method to collect difficult book debts that are beyond the normal remit of credit control.
Genuine book debts can be collected where contact with the debtor has been maintained within the last six years, acknowledgement has been received within those six years and proof of the debt exists. Case results rely strongly on the quality of proof in the pack the client assembles.
Colonnade handles debt books of a minimum value. We can also deal with one-off debts as part a general short term CFO appointment.
Liquidators also find our service useful, particularly where such specialism is not contained in-house and/or where the experience of past legal chasing leaves little for the creditors.
Colonnade has negotiated with landlords, energy companies, blue-chip trade creditors, local rating authorities and general trade suppliers to achieve cash flow benefits to the client.
In certain instances we achieve write-offs. In other cases we have ensured cash flow costs are significantly reduced, especially where suppliers have been frivolous. In all cases, the client must have genuine reason to be seeking this type of assistance.
This service can also be linked to a wider appointment of either restructure or Interim FD, whilst we will consider matters on a case by case basis.
We have performed many arrangements giving clients time to pay on corporation tax, VAT or PAYE, or on all three heads of tax together. We have also brokered tax on a serious fraud, resulting in controlled tax payments on the resulting ‘profit’ discovered, together with a detailed submission pack.
This service is generally offered to clients where an established relationship exists and to assist the client in genuine periods of rectifiable cash flow difficulties or where any other verifiable business reason exists. We are happy to look at matters case by case.
At the extreme, negotiations have resulted in tax write-off and even HMRC withdrawing imminent distraint, with their Officers on client premises during the negotiation. We have also mediated in extreme cases where the relationship was fractious between the client and the Collector, repairing the damage done and ensuring due apologies were made.