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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

email: timf@greenleafgroup.com


Copyright 1998-2000
Greenleaf Capital Group, LLC

 

 

 

 

 

 


Why Should You Sell your Bad Debt?

Common sense dictates that you will attempt to internally collect your delinquent receivables. Other than lost time and manpower, your recovery rate is nearly 100% if successful. If your internal team cannot collect the monies due, the next step is to assign the accounts to a third party collection agency or law firm where, if successful, your recovery rate is 50% to 80%.

But what happens to those accounts that neither your internal team or third party collection agency can collect? If the outstanding amount is significant, you may secure an attorney and commence legal proceedings against the account debtor. More likely than not, the amount due does not justify any further expenditure of time or money. In other words, it does not make sense to "throw good money after bad." The net result is that the vast majority of the accounts that have not been collected by your internal team or a third party collection agency is written-off as a total loss.

This is where Greenleaf Capital fills a vital need - after your internal team and third party collection agency have exhausted their efforts and you have written off the accounts as a total loss, Greenleaf Capital will purchase these accounts for cash and allows you to recoup a portion of these lost dollars. In the words of many recovery specialists and collection managers, Greenleaf Capital's purchase amounts to "found money."

Again, Greenleaf Capital provides to you an alternative to a total loss on your charged-off accounts. Greenleaf Capital's function and primary benefit to you should be as a last-resort source of recovery of your bad debt that otherwise will be a total loss and collecting dust in your warehouse. Click here to view flow charts that illustrate to proper role that Greenleaf Capital should play in your normal credit collection process.