If you are new to debt selling, looking for the right buyer can be tricky, but it doesn`t need to be.
When searching for a debt buyer, there is more to look at than just purchase price offers. Compliance, ample funding and proven experience can be key points to differentiate a promising long-lasting partnership from a potential risk to your reputation. Once you know what to look for, your search can be much more successful – here are our top 5 criteria to consider when looking for the right debt sale partner.
Proven experience matters
When starting your research, ask for proven purchasing experience in closing deals. You want a buyer that is experienced, transparent and efficient, and targets offering a good deal for all involved. A negative or non-existing closed deals track record should raise concerns regarding the potential buyer.
Your customers and your reputation
Customers that have an outstanding debt with you are still your customers. If you sell that debt, the company collecting it is representing your brand. Ensure your partner will treat your customers as you would. Aggressive collection practices can reflect badly on your brand's reputation. Make sure the debt buyer has your and your customer's interests at heart.
Good compliance policies
The debt buying industry is highly regulated. Make sure the buyer has a strong compliance program, including detailed policies and procedures that meet all regulatory requirements and the highest industry standards. Remember that if a buyer does not have, or does not follow, all required policies and procedures, their actions can negatively affect your brand as well. Also, inquire about their practices to collect and ensure they are fully compliant with the most recent rules relating to IT and data security.
Optimized pricing
For you to get the best price offer for your debt, the buyer needs to have strong analytics to back up their proposal. It also needs to have ample low-cost funding available, which directly affects the final offered purchase price. Understanding a buyer’sstructure and ownership will allow you to work with a company that can support sustainable optimized prices during a long-term relationship.
Customized solutions
Every company has its own priorities and specific goals, which means debt selling solutions will differ as well. A good buyer should be willing to provide a customized solution that suits your goals and needs.
The Wrap
Managing your receivables is an important part of business, just like other assets. Receivables should be managed properly, and it can sometimes be a difficult task to do so internally. Outsourcing your debt recovery can offer some smart and timely alternatives. Canaccede Financial Group is an experienced debt buyer with a proven track record of closing deals with new and repeat clients. As leaders in compliance, we put an emphasis on protecting your reputation and treating your customers as you would treat them. With experience in non-performing accounts, insolvencies, bankruptcies, forward flows, and other debts, Canaccede Financial Group is the largest multi-asset acquirer in Canada. We provide both debt servicing and purchasing solutions. Our expert valuation team can work with you to size the debt recovery potential for your organization. If you, or someone on your team, would like to find out more, please contact us at partnerships@canaccede.com
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