"Creditors have better memories than debtors."
~ Benjamin Franklin

Is Delinquent Debt Really Worth Something?

It's difficult to imagine that a portfolio of delinquent debt could be worth something, but in fact if it's legally collectable...it is.  Funding sources interested in purchasing debt portfolios are certainly looking for specific characteristics, including how much risk is involved, how collectable is the portfolio, and what is the overall worth.  The bottom line is that your business may have a portfolio worth buying to a funding source...and more importantly....worth cash sale to you.

The Benefits of Sale vs. Collections

As with other types of promissory income, time is a significant element.  Collections takes time, and typically, by the time an account is charged off to a collection agency, a great deal of time has already elapsed.  The time without income for your business means lost opportunities and a strain on your cash flow.  Delinquent debt can come from various sources including:

• Credit cards
• Student loans
• Retail installment contracts, etc.
   

The Collection Agency Approach

• Liability - Your business may still carry some liability of the actions taken by the agency on your behalf.
• Commission - Agencies commonly work on a commission, taking a share of the collected amount.
• Write-Offs - If a primary, secondary, or tertiary agency is unable to collect, the debt falls back to your business...which means write-off.
• Time Invested/Uncertain Outcome - As mentioned above, the length of time is a factor, but in this case, it's coupled with an uncertain outcome as well.

The Debt Portfolio Sale Solution

• Closure - Selling takes your business out of the picture.  Funding sources typically will sign an indemnification clause in the agreement to protect the seller from any legal action that may occur in the course of collecting the debt after the sale.
• Known Outcome - There is no longer an uncertain outcome in what you can get out of it.  True, that neither solution will pay face value on the uncollected debt, but by selling, you do know exactly what you'll get for it.
• Confidential Negotiations - Funding sources offer confidentiality during negotiation.  The names of the debtors need not be revealed until the price has been agreed to.
• CASH Now - And the clearest benefit, cash payment now.

Isn't it comforting to know that at CapSource Funding, you can even 'turn broken promises into profits'.

FREE CONFIDENTIAL Analysis

If trading your debt burden for an improved cash flow interests you, then submit an Information Form to CapSource Funding for review.  Learn how you can turn your promissory paper into profit.  Your request will be analyzed by a Certified Cash Flow Consultant (CCFC)*.  There is no obligation, and the process is quick, easy, and confidential.

* Find out how to obtain a FREE analysis...