If you want to purchase debt portfolios, you first need to find sellers!
Usual sellers are banks and credit companies which most probably already are in business with debt buying companies that are able to put enough cash on the table to buy large portfolios every year.
These portfolios are the residual of much larger ones that have been deeply and intensively worked on by debt collection services, third parties collection agencies, etc.
They are the “tank bottom” that is too hard to collect and this is the reason why it is sold.
Sellers perfectly know the real value of these portfolios and so do the buyers. This is why such portfolios are sold for pennies on the dollar.
Now, you must realize that almost each and every company around the world charges off debts every year.
Reasons why they did not collect those debts are:
- Debtor’s insolvency
- Debtor’s bankruptcy
- Statute of limitations
- Disputed debts
- Too small amounts to invest into legal costs
- Export debts that are too expensive and hazardous to collect
- Ineffective debt collection department and/or process
- Too friendly commercial policy
Except the first two reasons, all the other debts are potentially collectable for someone who is willing to spend time working on them and most important, who is determined.
All these charged off debts are absolutely valueless in the books of the creditors, so offering a few dollars for something that is worth zero in the creditor’s mind might turn out to be a good deal for everyone.
For the creditor: the price paid by you for his charged off debts is pure profit in his books
For you: paying a low price debts that you will succeed to collect is a good investment
Even for the debtors: because, as you purchased their debt at a low price, you may offer them an extra discount on their total amount due.
So, if any company potentially has uncollected debts for sale, you may then focus on those that match with your scope. Such scope can be determined according to:
- Type of debtors (individuals, business)
- Type of business (health, real estate, rental, fashion, etc.)
- Ageing of debts
- Amounts of debts
- Judgements w/o
- Domestic / International
- Portfolios / Single debts
You might already have a scope, but if you don’t or if you want to enlarge it, before starting to contact CFO’s or MD’s, ask yourself 3 simple questions about your target:
- What do they sell?
- Who do they sell to?
- How much do they sell?
Answering these questions will help you understand if the debts that you are about to purchase really are the ones you are looking for.
You might be reluctant to start cold calls campaigns in order to find your future sellers. This is understandable. And this is why Debtcatcher.com offers you the fastest and most easy way to be instantly in contact with sellers.
Simply register as a buyer, and you receive alerts every time a new single debt/portfolio is posted. Ultra-fresh leads for free!
No commission on deals ever be asked to you.
Not enough cash to purchase a whole portfolio? Never mind, you have the option to buy just a portion of it.
Now you know where to buy debts!