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Delinquent Consumer Debt

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The term "delinquent" or "bad debt" refers to debt that is more than 30 days overdue.

If you have delinquent debt portfolios (pools) totaling $500,000 or more that you have stopped pursuing the collection on, and intend on writing them off as bad debt, consider selling them to a funding source for cash. Funding sources rarely purchase individual accounts, they prefer to purchase portfolios having numerous debtors involved.



Limitless Capital works with institutional investors that purchase delinquent debt portfolios for cash. These funding sources specialize in buying bad debt portfolios; however, some of them do offer additional services.
We can help you locate a funding source that will meet your needs.

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The Benefits of Selling Bad Debt

Provides immediate cash for the business.
The business no longer has to wait to collect a percentage of the accounts when - and if - they are paid

Allows the business to turn a liability into an asset.
Even selling the delinquent debt porfolios at a discount yields cash where  previously was none.

Removes the burden of collection from the business.
By selling bad accounts you no longer need to deal with the collection process.

Releives the business from the concern of alienating their customers through inhouse collection efforts.

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The Information Needed to Determine if Your Portfolio is Assignable

Who has attempted to collect on the accounts?
Is collection done internally or by an outside entity such as a collection agency or collection attorney?
How many levels of collection does the account pass through before written off?

What is the type of debt? (credit card, student loan, retail installment contract, etc.)
Different funding sources purchase different types of portfolios.

What is the total size of the portfolio?
Funding sources have different parameters regarding size.

How many different accounts make up the portfolio?
Funding sources prefer accounts with a high number of debtors

What is the average size of an account?

How long from the date of last payment have the debts been delinquent?
The funding source will ask for an aging report

What is the debt distribution?
Total outstanding balances on accounts, location of each debtor,date of last payment on each account.

What is the placement level of the debt?
Zero, primary, secondary,tertiary, or quad.

Is the debt collateralized?(if so, by what?)
Does the payor still have the product? Accounts must be collectible by law.