Red Flag Alert: reducing the financial risk of taking on new clients
At Nexa, we are always looking for ways to give our consultant lawyers more. We want to make their lives as easy as possible so that they can concentrate on doing the work they love and delivering a great service to their clients.
We like to think that we provide our lawyers with an exceptional level of support that they wouldn’t get at a lot of other new model firms. That’s why we have partnered with Red Flag Alert to offer a comprehensive credit and risk management service, accessible to all our consultants.
How does it work?
Colleagues based at our office in Oswestry support our consultants with their new client and new matter administration. Red Flag Alert is an invaluable service which helps with this process, taking the stress out of corporate client due diligence.
It’s not just satisfying a regulatory requirement to fully understand a client’s financial position before starting to act for them, it’s crucial for consultants to know they will get paid for the work they do.
Red Flag Alert gives every business a financial health rating using a vast array of data to accurately predict the risk of insolvency. This can be used to ensure the onboarding process is as smooth as possible, for example by enabling credit limits to be set or money to be taken on account.
The extent and quality of the data gives consultants a much fuller picture than they might otherwise have so they can consider carefully if they want to, or should be, acting for the client.
If anything changes, information is updated quickly and accurately and this is a very efficient way to monitor clients and help with credit control.
Peace of mind
Red Flag Alert estimates that £4 billion of bad debt is written off each year in the UK. As we all know, even the biggest and seemingly most established companies are not immune from failing. At Nexa, we want to do everything we reasonably can to prevent our consultant lawyers losing out to bad debtors.
We think Red Flag Alert is a fantastic tool which goes a long way towards provide peace of mind when it comes to taking on new corporate clients and monitoring their ongoing financial health so that any potential problems can be spotted as early as possible.
This is a great addition, and adds real value, to the support package we offer our consultants here at Nexa.
–Helen Godfrey, Compliance Manager