Selling Debt- Be Carefull
- Written by Shane
A business may decide to sell it’s debt for a variety of reasons:
1. The business needs to raise CASH immediately;
2. The debt has become aged and considered uneconomic
to pursue;
3. The business does not have the resources to actively
work the debt to recover any amount;
4. The internal processes in the business are not robust
enough to identify, control and recover overdue debt.
Ordinarily debt is sold (assigned) for between $0.00 to $0.10 cents in the dollar. Often the process of sale (assignment) can be conducted in a somewhat professionally crude manner.
It is important to fully understand what your bad debt is really worth and what additional value you can receive if you decide to sell (assign) it.
Specialist Collections & Consultants Limited can act for you to value your bad debt, act as your agent in sale (assignment) negotiations and also to find you a buyer.
Do not sell your debt, which is an asset, too cheaply and make sure that you obtain the best possible return.
For more information contact us at info@collectionexpert.co.nz or visit our website at www.collectionexpert.co.nz