Gold Coast start-up Debtplacer launched to connect businesses with debt collectors as unpaid construction invoices multiply

Tradies and subcontractors are at risk of failure due to a “profitless boom” in the construction industry, a Gold Coast accountant has warned.

TRADIES and subcontractors are at risk of failure due to a “profitless boom” in the construction industry, which is likely to see unpaid invoices skyrocket, a Gold Coast accountant has warned.

Forensic and insolvency accountant James Cook last week left a senior role at GT Advisory to launch Debtplacer, a platform that connects businesses with a marketplace of debt collectors and law firms who compete for the opportunity to help.

Working in insolvency, Mr Cook saw the toll of unpaid debts on small businesses, which often left it until too late to seek help chasing their money.

He launched debt delegation service Debtplacer to help businesses get paid for their products and work.

Forensic accountant James Cook has started his own debt collection platform Debtplacer.

Debtplacer puts debts out to a virtual tender process where collectors can submit proposals which vary in method and cost.

The business name and other confidential information remains hidden until the business selects a proposal that suits them, before the collector takes on the task of chasing the money.

“If someone is struggling with a debt recovery, we can put them in touch with people who can offer a solution to them,” Mr Cook said.

The start-up has attracted investment from professional investment firms as well as individuals in the insolvency sector and already has sign-ons from law firms and collection agencies.

Mr Cook said construction businesses in particular were at risk as rising supply costs meant contracts were becoming unprofitable before building even began.

“There’s a lot of stress in the construction industry at the moment, there’s been a boom, but it’s also been a profitless boom,” he said.

“There are companies that agreed to contracts 12-18 months ago and are now having to absorb very sharp cost increases, and there’s often no margins left in the job.

“We’ve heard of builders handing back contracts as they’re no longer profitable.

“It’s very important for small to medium businesses not to let unpaid invoices sit on the shelf for too long.”

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