The advantages of debt sale include generating instant cash flow from defaulted accounts. Selling with EverChain UK means that these accounts will be transferred in ownership to a debt buyer that specialises in recovering old debt, and has the infrastructure and processes in place to compliantly collect the debt.
Other financial benefits include the fact that debt sale has real and serious consequences for a creditor’s customers. Having such consequences can often increase early collections percentages. Debt sale can also reduce the damage of bad debt to a company, and ensure maximum balance sheet value. This essentially means that creditors can improve their financial performance, whilst also minimising the regulatory, reputational and financial risks associated with debt collection.
In addition to the financial benefits, removing the need to chase debt also reduces a creditor’s collections resource and staffing costs. Working with EverChain UK will furthermore remove the need and resource for regulatory overheads such as annual statements and SNOSIA’s.
In terms of productivity, debt sale should free up the time of a creditor’s collections team, allowing them to focus on what they do best. Staff can concentrate on early collections, rather than futilely chasing old debt. This in turn should increase staff morale.