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Turning Bad Debt Into Cash


Selling Your Bad Debt

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Contact Greenleaf Capital

3411 Brei Kessel Road
Independence, MN 55359
(952) 944-9500
(952) 944-5555 fax


Copyright 1998-2000
Greenleaf Capital Group, LLC






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Q1: What is Greenleaf Capital?

A1: Greenleaf Capital is a purchaser and a national, value-added distributor of charged-off accounts. Quite simply, Greenleaf Capital purchases bad debt and delinquent receivables for cash.

Q2: Do you buy our accounts receivable?

A2: Yes, this is exactly what Greenleaf Capital does. Greenleaf Capital does not collect these accounts on your behalf on a contingency basis or otherwise. Greenleaf Capital makes an outright purchase for cash of the financial rights to the invoices sold.

Q3: Why would I do business with Greenleaf Capital when there are an abundance of collection agencies to choose from?

A3: Greenleaf Capital is NOT a collection agency. Greenleaf Capital is not interested in collecting your bad debt on a contingency basis or otherwise. Greenleaf Capital IS interested in purchasing your bad debt outright for cash.

Q4: I am confortable with my current "collection agency process," therefore, why do I need Greenleaf Capital’s services?

A4: That’s great – Greenleaf Capital does not and will not compete with collection agencies. Instead, Greenleaf Capital will purchase the accounts that your collection agency cannot collect – this is the debt that your company simply writes off. Greenleaf Capital’s role in your collection process is a last resort recovery tool for accounts that you have determined to write-off.

Q5: How does Greenleaf Capital make money?

A5: Greenleaf Capital had a two-prong approach for the accounts it purchases. First, Greenleaf Capital attempts to collect the debt itself. Greenleaf Capital has created a vast network of attorneys and other related professionals in the collection industry with state of the art technology and data mining capabililities, including asset search services, credit bureau/trade information and other data matching programs. It is very rare that Greenleaf Capital will actually litigate any of the accounts it has purchased. Instead, Greenleaf Capital leverages its sophisticated technology, experience and up-to-the-minute debtor information and collects the amount due short of litigation. Second, Greenleaf Capital will combine the accounts sold with others and then create smaller, specialized portfolios. These portfolios are customized by the type of debt (consumer/commercial), industry and location of debtor. Greenleaf Capital primarily sells these customized portfolios to licensed and bonded collection agencies and law firms who specialize in the collection of distressed accounts.

Q6: How much will Greenleaf Capital pay for my "bad debt?"

A6: Greenleaf Capital is willing to buy your bad debt for cash. Rather than collecting nothing (0%) and simply writing-off these accounts, Greenleaf Capital is willing to give you up-front cash for your bad debt. The purchase price will vary depending upon the type of debt, the age of the debt and the exact nature of the transaction.

Q7: What type of accounts do you buy?

A7: Greenleaf Capital purchases just about any valid receivable for a service performed or a product delivered.

Q8: Is there a minimum amount of accounts that you will buy? Our company only writes-off a small amount of accounts per year.

A8: Although most creditors prefer to group several years of charged-off accounts, Greenleaf Capital does not impose any floors. Many creditors make the mistake in assuming that Greenleaf Capital is only interested in purchasing the prior year’s bad debt. To the contrary, Greenleaf Capital customarily purchases accounts as old as four years. Creditors are generally surprised how many accounts have been written off and how much their portfolios are worth when they combine several years of bad debt.

Q9: Does the administrative time for such a return warrant my time?

A9: Absolutely, because you have already incurred this administrative cost. Greenleaf Capital does not require any documentation other than what you have already provided to your collection agency in your normal credit collection process. Greenleaf Capital, much like you, is not interested in devoting significant time and resources to conduct due diligence activities with respect to these charged-off accounts. Greenleaf Capital has developed a streamlined approach which makes this transaction efficient, timely and cost-effective for both you and Greenleaf Capital. After all, Greenleaf Capital wants this transaction to be as painless and non-disruptive as possible because it wants to do business with you every time you write-off accounts.

Q10: If I sell my charged-off accounts to Greenleaf Capital, do I have to be concerned with being sued by the account debtors for Greenleaf Capital’s or its customers conduct?

A10: Both practically and legally speaking, it is extremely rare for a seller to be sued in this industry on the basis of the buyer’s conduct. Remember, Greenleaf Capital and its customers are highly qualified and experienced professionals with extensive knowledge of both federal and state collection laws. Indeed, how many times have you heard of a company being sued for the actions of its collection agency or attorney? Very few, if any as all. At any rate, Greenleaf Capital is willing to back-up this statement: Greenleaf Capital fully indemnifies sellers from any claims by account debtors relating to its violation of any applicable law, rule or regulation. Moreover, Greenleaf Capital’s contract with its customers specifically includes a provision whereby Greenleaf Capital’s customer also indemnifies you from such claims.

Q11: Will I be contacted by Greenleaf Capital or its customers after I sell the accounts?

A11: No. Greenleaf Capital recognizes that one of the primary concerns of a creditor selling its charged off accounts is continually responding to questions and requests relating to the accounts sold several months earlier. Greenleaf Capital’s contract with its customers specifically states that it cannot contact you. Once the accounts have been sold, there is closure and you will no longer have to deal with these accounts.

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Globelle, Inc.

Globelle has been very pleased with the service it has received and very grateful for the financial benefits derived from selling its written-off accounts throuh Greenleaf Capital. We increased our collection recovery rates on accounts that were simply being warehoused. Selling our written-off accounts was fast and easy. The decision to sell our bad debt to Greenleaf Capital was a "no brainer."

J. Wilson

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 Realtime Electronics

Good communication is key in today’s fast moving environment and is a primary reason Greenleaf Capital is able to provide superior service. Greenleaf Capital’s management team is professional, flexible and very easy to work with.

R. Zakheim

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CPU Micromart

It’s a terrific opportunity to receive cash for non-performing assets. Greenleaf Capital’s process makes the sale of bad debt painless, non-disruptive and cost-effective. Selling our bad debt amounts to "found money!"

S. Herman