Sell debt to generate optimized recurring cash flow from defaulted loans.
Creditors are facing more challenges today with managing defaulted consumer credit accounts. Account default rates are rising, the cost of collecting is rising and the web of regulatory and legal environment changes requires full-time effort to understand, manage and monitor. Creditors are not in the business of collecting on defaulted accounts forever; they are in the business of making loans, selling products and providing services. Working with EverChain allows you to cease collecting at the point of diminishing return.
Debt sales is an account recovery strategy that enables creditors to unlock immediate cash flow from defaulted accounts by transferring ownership to an organization that specializes in recovering these types of accounts (a debt buyer) with the infrastructure necessary to collect effectively and compliantly. Cash received for post-defaulted accounts goes straight to the creditor’s bottom line and provides immediate liquidity.
By selling accounts to a debt buyer, creditors are able to improve their financial performance while minimizing regulatory, reputation and financial risks inherent in debt collection both internally and through the management of third-party collection agencies and law firms.