RecoupIQ • UK Merchant & Counterparty Risk Infrastructure
Executive Risk Briefing: Modulr
UK Entity: MODULR FS LIMITED (CRN: 09897919) • Segment: Payment Gateways, Rails & Embedded Banking
Prepared for Leadership: Myles Stephenson (CEO & Founder) • Rakesh Sharma (Director of Risk & Compliance)
CONFIDENTIAL BRIEFING
Prepared by Alex • Founder, RecoupIQ
Statutory Accounts Basis: FYE 31 December 2024
What RecoupIQ Offers Modulr • At a Glance
Stop UK Merchant Defaults & Section 75 / Chargeback Write-Offs Before Payout Leaves Your Bank
1. What We Provide
<150ms Pre-Payout Gate
Pass any UK CRN before T+1 payout, reserve release, or advance. Returns ALLOW, HOLD, or BLOCK with a SHA-256 audit certificate.
2. Why You Need It Now
30–60 Days Ahead of Bureaus
Experian/Creditsafe & card fraud tools miss live London Gazette Rule 7.10 Winding-Up Petitions, Section 127 void dispositions, and sudden director resignations.
3. Modeled Value
£380k–£564k / yr
Modeled against Modulr’s £1.20m audited impairment & £2.00m provisions.
4. How To Start & Cost
£0 Backtest → £1,495/mo
Test 10–50 past merchant write-offs for £0 today. Production shadow pilot is £1,495/mo (or £0.05/check) with zero lock-in.
The Settlement & Default Timing Gap: Across both B2B (merchant cash advances, trade credit, corporate payouts) and C2B (consumer card acquiring, BNPL, POS retail finance, and Open Banking checkout), when a UK merchant collapses, legacy credit bureaus update 30 to 90 days late. During that window, Modulr continues sweeping T+1 payouts or carrying unhedged consumer Section 75 / Visa & Mastercard “Services Not Rendered” chargeback liability against an insolvent UK limited company. RecoupIQ closes this window with a synchronous
<150ms pre-payout and pre-onboarding gate across 5.3M UK companies.1. Statutory Risk Profile & Modeled Annual Savings (MODULR FS LIMITED)
Audited P&L Impairment
£1.20m
Source: Note 2
Balance Sheet Provisions
£2.00m
Source: Strategic Report, page 5, and Note 11
15% Loss Pre-emption
£180k – £264k
Annual bad-debt & chargeback avoidance
Total Annual Benefit
£380k – £564k
Combined EBITDA + IFRS 9 reserve release
Audited Turnover & Result: £15,477,379 • Operating Result: £12,694,596 • Net Result: £11,797,140
Wholesale / Senior Debt Facilities: None explicitly disclosed. The company relies on equity funding as stated in the Strategic Report (page 5). No bank facilities, revolving credit lines, or secured lenders are identified.
Statutory Audit Note Disclosure: Customer Default Risk: 'Business failure of our customers, who are spread across a number of verticals, due to economic slowdown remains the principal economic risk.' (Strategic Report, page 5). Additionally, 'The company has no significant concentration of credit risk, with exposure limited to MFL.' (Strategic Report, page 5). Fraud/Reimbursement Risk: Regulatory changes, specifically the 'mandatory Authorised Push Payment ('APP') fraud reimbursement' in October 2024, brought 'increased liability to Modulr itself for certain customer types'. Modulr manages this 'to minimise reimbursement risk via its onboarding and monitoring processes.' (Strategic Report, page 5). No specific commentary on merchant settlement risk or general chargeback exposures beyond APP fraud reimbursement.
2. What Payment Teams Use Today vs. Why Merchant Collapses Still Slip Through
| Existing Tooling Layer | What It Checks | The Structural Blind Spot | How RecoupIQ Closes It |
|---|---|---|---|
| 1. Legacy Credit Bureaus Experian, Creditsafe, Equifax, Dun & Bradstreet | Day-0 onboarding KYB & static annual balance sheets | 30-to-60 day batch lag on Gazette Winding-Up Petitions, High Court claims, and director resignations (TM01) | Day-1 Court, Gazette Rule 7.10 & Companies House streaming triggers before T+1 payout |
| 2. Transaction Fraud Engines Stripe Radar, Adyen RevenueProtect, Sift, Featurespace | Stolen consumer cards, BIN velocity, device fingerprinting | Zero visibility into whether the UK merchant (CRN) receiving the payout is about to enter liquidation | Scores the UK corporate counterparty (CRN) in <150ms (`ALLOW` | `HOLD` | `BLOCK`) |
| 3. Open Banking Consents Plaid, TrueLayer, Yapily AIS feeds | Merchant bank account balances (when connected) | 90-day OAuth re-authentication drop-off; distressed directors revoke bank feeds first | Zero merchant consent required; 100% continuous coverage across all 5.3M UK companies |
3. Commercial Pricing & Unit Economics (30x+ Single-Collapse ROI)
Step 1 • Proof of Value
£0 Historical Backtest
Test 10 to 50 of Modulr’s past merchant write-offs or chargeback defaults right now. We show the exact date RecoupIQ would have triggered
HOLD or BLOCK prior to collapse.Step 2 • Shadow Pilot / Growth API
£1,495/mo (or £0.05/check)
Includes 30,000 synchronous pre-payout checks/month + daily Gazette Rule 7.10, CCJ & director-exodus webhooks across your active UK merchant book.
The Payback Math
1 Intercept = 32x ROI
Preventing a single mid-sized UK merchant default or C2B chargeback wave (£48,500–£85,000 average loss) pays for 2.5+ years of the RecoupIQ API on day one.
Direct Founder Access • Zero NDA Required to Test
Run a 60-Second Backtest or Speak Directly With Alex
Paste 10 to 50 UK Company Registration Numbers (CRNs) into our self-serve backtest workbench, or email contact@recoup-iq.tech with your phone number and Alex will call you directly for a 10-minute walkthrough of Modulr’s statutory exposure model.