DEBT PURCHASING
Debt Purchasing
The term Debt Purchasing is usually reserved for the sale of delinquent receivables where normal collection efforts may no longer be a cost effective option.
Debt Purchasing has two major benefits:
- Delinquent receivables with a low collection potential are removed from the balance sheet
- Rather than writing off a total loss, a salvage value can be received through the sale of the delinquent receivables
For certain companies that have experienced a large set of accounts receivables that remain uncollected, debt purchasing can be a very quick way to clean up the financial statements. We consider all debt portfolios for purchase and evaluate each on its merits.