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Insolvency Services

 

 

Our Insolvency Services team offers expert credit support and assistance, including professional representation at creditors' meetings, advice on retention of title and loss mitigations through pre-insolvency work-outs. You'll also be able to download our credit support advice on Retention of Title.


Guide to Retention of Title

An effective Retention of Title (ROT) clause in your terms and conditions of sale will ensure that you are ranked ahead of ordinary unsecured trade creditors in the event of the insolvency of one of your customers. There are two main types of ROT clauses as follows:

A "simple clause" is the most basic form of retention of title which specifies that title to the goods represented by each of your invoices shall only pass from you to the buyer when the buyer has paid you in cleared funds the invoice value of those specific goods.

An "all monies clause" specifies that title to the goods represented by each of your invoices shall only pass from you to the buyer when the buyer has paid you in cleared funds the invoice value of those specific goods and the invoice value of all other goods that you have sold or agreed to sell to the buyer.

Our advice would be that you have an “all monies clause”. (If you have one of our new Policies, an "all monies clause" is a condition of cover). The main benefit of having this as opposed to a “simple clause” is that in the event that you make an ROT claim after your customer has entered insolvency, as long as you are able to identify your goods, there is no need to match up specific goods against specific unpaid invoices.

 

 Click here to view EHUK and EHI Guide to Retention of Title