CorporatesReduce dispute resolution costs, get paid on time & protect your reputation



How much does your company spend on legal fees?

In the UK alone in 2015, the legal sector turned over £25.7 billion (Office of National Statistics, UK).

Selling

As a large business selling goods and services to the public and other companies you face the following challenges:

  1. Will we get paid in full and on time? We’re working in a competitive, low-margin environment and high rates of late or non-payments negatively impacts our bottom line.
  2. How can we avoid the need for letters of credit or bank guarantees? They tie up too much of our cash for months or years at a time and take weeks to put in place but are a requirement of many contracts.
  3. How can we improve customer relations and retention rates in situations where the goods or services do not meet the customer’s expectations when we believe that we’ve met the agreed specifications?
  4. How can we reduce our credit risk and our spend on external debt recovery solutions?
  5. How can we maintain our position as a good corporate citizen by treating customers fairly and impartially while at the same protecting our business model?

Buying

As a large business buying goods and services from other companies you face the following challenges:

  1. What recourse will we have if we’re not happy with the quality of the goods or services provided or if they are delivered late (or not at all)? Conventional litigation is expensive, slow and distracts key personnel from our core business.
  2. We've been asked to pay a large deposit upfront by a small business before they will start any work. We have no alternate supplier but what guarantees do we have that the deposit will actually be spent on our project?
  3. How can we avoid the need for cash-backed letters of credit or bank guarantees? They take weeks to put in place and are expensive to arrange.
  4. What can we do if we don't have the technical expertise in-house to ensure that the supplier meets the contract specifications? We’ll have to engage our own experts which will add cost and take time.
  5. If the supplier does not perform then we can’t afford the delay of litigation. Is there a fairer and quicker way to resolve disputes?
Who is a Contract2Pay referee?

An independent, subject matter expert who is appointed only by the mutual agreement of the buyer and the seller.

The Solution

What if there was an independent expert that you could refer disputes to for rapid and fixed-cost resolution? In all sports, competing players and teams agree to abide by the decision of an umpire or referee. Disputes are resolved rapidly in accordance with the laws of the game and without the time and expense of hiring lawyers and preparing court papers.

Contract2Pay allows a buyer and a seller to appoint an independent referee by mutual agreement. If a dispute arises then it can be referred to the referee for a rapid decision (at no expense to the buyer). If either buyer or seller disagrees with the referee's decision then (for a nominal fee) it can appeal it to a panel of three independent referees, all subject matter experts, who will make a final and binding decision.

Contract2Pay gives large corporates the power to resolve contractual disputes with the public and small businesses transparently and fairly while avoiding costly, lengthy and stressful legal action. Reduce your dispute resolution costs, get paid on time and protect your reputation. Sign up for Contract2Pay today.

Faster, cheaper & fairer results for buyers and sellers


Benefits for Sellers


  1. Fast, low cost dispute resolution: Disputes are resolved, in most cases, within days or weeks not months or years. The dispute resolution fees are capped as part of the transaction fees. Say goodbye to huge legal bills.
  2. Fair and transparent: Whether you are a large multi-national, sole trader or a private individual, the dispute resolution process is conducted impartially by a subject matter expert based solely on the documentation and history on the platform.
  3. Get paid in full and on time: Milestone payments are released immediately when approved by the buyer. If the buyer does not approve the release of the payment then the seller can escalate the matter to the independent referee who can release the payment (either in full or part).
  4. No need for cash-backed letters of credit or bank guarantees: Contract2Pay replaces the anomaly of sellers needing to supply letters of credit or bank guarantees. Instead each milestone payment held in escrow until the buyer is satisfied with the delivery of each milestone.
  5. Eliminate payment delays due to claims that goods or services do not meet the buyer’s expectations: The seller can escalate any such claims to the independent referee, a subject matter expert, who can review the claim against the agreed specifications and release any withheld payment.
  6. Cover the costs of cancelled orders: In the case of cancelled orders, the referee can make a decision (at the request of either the seller or the buyer) and release funds to the seller from any milestone payments to cover the seller’s fair and reasonable costs.
  7. No need to engage expensive and time consuming lawyers or debt recovery agencies to resolve disputes or pursue bad debts: All milestones are pre-paid into escrow and, if a payment dispute arises, then it can be referred to the independent referee for a rapid decision and release of funds to the seller.


Benefits for Buyers


  1. Fast, low cost dispute resolution: Disputes are resolved, in most cases, within days or weeks not months or years. The dispute resolution fees are capped as part of the transaction fees. Say goodbye to huge legal bills.
  2. Fair and transparent: Whether you are a large multi-national, sole trader or a private individual, the dispute resolution process is conducted impartially by a subject matter expert based solely on the documentation and history on the platform.
  3. Monies held in escrow: All milestone payments are held in Contract2Pay's partner escrow accounts and cannot be released without the buyer’s approval or, in the case of disputes, the referee's instruction making it impossible for the seller to take a deposit and use it for some other purpose.
  4. No need for cash-backed letters of credit or bank guarantees: Each milestone is pre-paid so the seller has 100% confidence in a buyer’s ability to make payment.
  5. Eliminate unplanned cost increase and contract changes: All cost increase and contract changes must be submitted by the seller for pre-approval by the buyer. If they haven’t been changed and agreed on the platform then no additional funds are due to the seller.
  6. Access to an independent subject matter expert: No need for a buyer to employ a team of experts to hold a seller’s team to account. Simply escalate disputes or proposed contract changes to the referee for resolution.
  7. No need to engage expensive and time consuming lawyers to resolve disputes: If a dispute arises then it can be referred to the independent referee for a rapid decision.
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