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Turning Bad Debt Into Cash

 

Selling Your Bad Debt

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 diamond.gif (591 bytes)  An Emerging Trend
 bullet2.gif (150 bytes)  Advantages of Selling
 bullet2.gif (150 bytes)  Why Should You Sell?
 bullet2.gif (150 bytes)  How Does it Work?
 bullet2.gif (150 bytes)  Brokers
 bullet2.gif (150 bytes)  FAQ/Testimonials

Contact Greenleaf Capital

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

email: timf@greenleafgroup.com


Copyright 1998-2000
Greenleaf Capital Group, LLC


 

 

 

 

 

 


Selling Bad Debt is an Emerging Trend

Today's business owners and collection managers now have an additional option after internal collection efforts and placement to agencies or attorneys have failed to recover the monies rightfully due to them. A new source of recovery of your bad debt is now available. For some, it means receiving "free money." For others, it means improving cash flow or meeting short-term or year-end goals. Whatever the reason , the selling of charged-off accounts is fast becoming a useful and effective recovery tool.

The first reported sale of charged-off receivables occurred in 1983. Major banks and financial lending institutions quickly followed suit by selling their charged off accounts previously placed with several collection agencies. The Resolution Trust Corporation encouraged the trend, conducting eight national loan auctions in the 1990's. Now, other industries are also selling their charged-off accounts to improve their collection and recovery numbers. Among others, telecommunication companies, retailers, distributors, utilities and even medical service providers are now selling their bad debt.

Estimates for total sales of charged-off accounts in 1998 are more than $7 billion and increasing every year. It is clear that selling charged-off accounts is becoming an accepted practice and an important tool for managing collection efforts and improving recovery rates. Sophisticated creditors recognize that utilization of this new recovery tool will certainly improve its bottom-line performance and is a necessity as competitors begin to participate in the marketplace.