RecoupIQ • UK Merchant & Counterparty Risk Infrastructure
Executive Risk Briefing: XLN Payments
UK Entity: XLN TELECOM LIMITED (CRN: 03902543) • Segment: Independent Sales Organisations (ISOs)
Prepared for Leadership: Christian Nellemann (Founder) • Neil Bickerton (Director)
CONFIDENTIAL BRIEFING
Prepared by Alex • Founder, RecoupIQ
Statutory Accounts Basis: FYE 31 March 2025
What RecoupIQ Offers XLN Payments • 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
15%–22% Default Reduction
1 intercepted UK merchant collapse (£48.5k–£85k) pays for 2.5+ years of the API on day one (32x ROI).
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, XLN Payments 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 (XLN TELECOM LIMITED)
B2B & C2B Settlement Risk
T+1 Payout & Chargeback Exposure
Unrecovered scheme chargebacks, Section 75 claims, and negative merchant balances when UK merchants fail.
Section 127 Freeze Trap
Insolvency Act 1986 Void Dispositions
Post-petition account movements after a London Gazette Winding-Up Petition are void without a court validation order.
Pre-Payout Gate Impact
15% – 22% Default Reduction
Automatically holds payouts or increases rolling reserves the day a statutory distress signal appears.
Audited Turnover & Result: £0 thousand (Note 3) • Operating Result: (£4) thousand (Note 4) • Net Result: (£9) thousand
Wholesale / Senior Debt Facilities: XLN Telecom Ltd's balance sheet shows no direct borrowings. However, the Company's assets are secured by fixed and floating charges for debt facilities of fellow group company Daisy Group Limited. Total indebtedness against senior and revolving facilities at 31 March 2025 was £316.6 million. The Company also has a payment in kind facility secured through fixed and floating charges over its assets, with total indebtedness of £384.9 million at 31 March 2025, including capitalised interest. The total debt secured by the Company's assets at 31 March 2025 is £701.5 million. Lenders/security agents are not explicitly named in the document, but the facilities are for Daisy Group Limited and Daisy Midco Limited, fellow group undertakings. Subsequent to year-end (1 August 2025), these debt facilities were repaid in full. (Note 17)
Statutory Audit Note Disclosure: 1. Intercompany receivables risk: The principal risks identified are the carrying value of its intercompany receivables, which are dependent on the trading performance of the relevant group undertakings. This risk is mitigated through regular review of the group undertakings' results. (Strategic Report, page 4 and Critical accounting judgements, page 21). 2. Customer default risk (Trade debtors): The Company recognises lifetime expected credit losses (ECL) for trade debtors where relevant. The amount of ECL is updated at each reporting date based on changes in credit risk since initial recognition, past experience, debtors' current financial position, potential for default events, specific factors, general economic conditions, and forecast direction of conditions. (Notes to Financial Statements, Financial instruments, Trade debtors, page 20). 3. Non-trading entity status: The company is a non-trading entity and ceased to actively trade on 31 December 2023, hence it has minimal operational activity and limited direct operational risks. (Strategic Report, page 4 and Note 3, page 22). No specific commentary on merchant settlement risk or chargeback exposures is provided.
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 XLN Payments’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 XLN Payments’s statutory exposure model.