Delinquent Debt comes in many forms:

• Credit card
• Student loans
• Retail installment contracts, etc.

How does delinquent debt differ from collections?

• Placing portfolios with collection agencies causes the business to be doubly exposed from a liability perspective
• Collection agencies typically work on a commission basis, earning a percentage of the amount they are able to collect. Uncollectible accounts, however, revert back to the business
• Selling delinquent accounts removes the seller from the picture entirely.
• Collection agencies rarely collect money on all accounts. Funding sources, however, will pay immediate cash for every legally collectible amount.
• Information is treated with utmost sensitivity and remains totally confidential.
• The business need not reveal the actual names of the debtors until an agreed-upon price has been reached for the delinquent account.
• The funding source will sign an indemnification clause in the purchase agreement to protect the institutional seller from activities in which they may engage that might cause legal action.