Customer Story Jaymes

Given the impact of COVID-19 to the global economy, it's no surprise that many companies are hurting and filing for Chapter 11. Thankfully for us, we've been able to weather the storm.

In Q2 2020, we received word that one of our therapeutics providers had filed for bankruptcy. I think it was sometime in Q3 that we submitted a claim for our receivables so that we could claim our loss with the court.

Because our claim was unsecured, my General Counsel advised that there's a chance we would recover less or barely any of the amount we claimed as a result of how claim prioritization typically transpires in bankruptcy cases.

I was totally prepared to write it off. However, getting something is better than getting nothing. It's not hard to see that.

With this in mind, I didn't hold my breath on getting payment for the unsecured claim. To me, it was out of sight and out of mind.

But a couple months later, we started getting hardcopy letters with offers to purchase this claim. I also received an email from XCLAIM around this time, and it intrigued me that there's an online marketplace that exists for claims.

I decided to give it a try and signed up.

From the time when my claim was posted on the marketplace to getting an offer, it took about a week. I felt the offer was very fair.

From the time when my claim was posted on the marketplace to getting an offer, it took about a week. I felt the offer was very fair. What stood out to me was how concise and simple the offer email was. With the paper offers, there wasn't anywhere close to the amount of information and process explanation. But everything from XCLAIM was outlined so clearly as to what was needed, what would take place, and what I'd have to do.

In total, I received several offers and I was able to choose the one that I felt was most able to minimize my loss.

Getting offers to buy our claim changed my perspective. At first, I was totally prepared to write it off. However, getting something is better than getting nothing. It's not hard to see that.

In total, we received several offers and I was able to choose the one that I felt was most able to minimize my loss. There were definitely some low-ball offers proposed to us.

But whether I got 5 cents on the dollar or 75 cents on the dollar is beside the point. With an online platform, I figured that it would take the same amount of effort to transact and sell my claim regardless of the price. This for me is an easy win.

It's an incredibly easy platform to compare what the offers are, and for the transaction to occur. For someone new to all this, XCLAIM made the process transparent and simple.

While the offer I got on the marketplace was better priced than some of the hardcopy offers, I decided to negotiate a little. I made a higher counter offer and the XCLAIM buyer countered back. I countered again, and this time the buyer agreed on the price. Within a matter of two hours, I was able to raise the offer by an additional 5% and complete the deal. It was really frictionless from that point on to complete the transaction and get the payment wired.

Could I possibly have held out for more? Maybe. But why waste my time dealing with 7 firms separately when I could just post it on the marketplace and let the competition decide?

I'm satisfied with getting guaranteed money now on this unsecured claim instead of dealing with the vagueness and uncertainty of the court case. Compared to writing it off or managing individual negotiations, conducting the entire process online is such a better and faster alternative.

It's an incredibly easy platform to compare what the offers are, and for the transaction to occur. For someone new to all this, XCLAIM made the process transparent and simple.