How does a debt purchase work?

What can you do when a counterparty unexpectedly turns into a debtor? Selling receivables is one of the fastest solutions to such a problem. It can often be more beneficial than debt collection on your own. Independent actions usually result in the opposite of the desired effect. With the help of a qualified team of specialists, you will quickly get rid of the problem and improve or even fully recover your financial liquidity.

The sale of a debt occurs under a contract, which in Polish law is called an assignment (transfer) of receivables contract. According to its provisions, all rights and interests related to the amount due are subject to sale. The contract should contain very detailed terms of payment. The main points that should be included in it are the price for which the debt will be sold and the date of settlement of the transaction. In addition, the contract must also explain the legal relationship that necessitates it.

As far as the debtor is concerned, he or she is given the choice of how to repay the debt. One option is to return the money within the time limit and amount, valid in the existing civil-legal contract. Another option is to conclude an agreement, in connection with which the repayment of the debt may be postponed or spread into convenient instalments. The sale of debt may thus benefit not only the creditor but also the payer.

Debt purchase from natural persons

Debt sale is one of the most popular debt collection alternatives. There may be many reasons behind the decision to change the way of claim collection. In our ranks there are specialists in purchasing debts owed to natural persons. Our wide offer includes assistance for people who:

• have not received the money due after the due date,
• are unable to make contact with their debtor,
• have made attempts to recover money without the desired results,
• do not want to decide on often time-consuming and expensive court and enforcement proceedings,
• want to recover a significant portion of their capital quickly and efficiently.

If you are afraid that after going to court with the payer you will lose more than you can gain, then our offer of purchasing debts is addressed to you. We will take care of your case in accordance with the binding procedures and we will pay you money which will go straight to you.

Debt collection from private individuals

Private debt can be sold in the same way as business debts. However, private claims tend to be more problematic. This is because they often involve friends or family, which makes enforcement much more difficult. Therefore, using the services of professionals may be the best choice. By entering into a contract with us, you will receive a useful cash injection and avoid having to make awkward attempts to recover your money.

Personal debt buyback requires an analysis and valuation of the debt. To do this, we will only need a few necessary documents and information. These include such things as a copy of the judgment, letters from the debt collector, or an address and phone number. We must of course be able to contact the debtor. As soon as your application has been processed, we will offer you a debt buyout. If you accept it, you will receive the payment within 24 hours.

When is it possible to sell a debt?

This is an extremely profitable action when the company is in a poor financial situation. An important factor is the timing of the decision to sell. It will be much more difficult to get rid of debts whose due date has passed a very long time ago. It may also involve a lower valuation. This is because overdue debts are usually difficult to enforce. It will be easier to sell a fresh debt that is properly documented, ie:

• has properly described invoices that have been accepted by the counterparty,
• has attached documents, in which the debtor confirms his debt,
• has confirmation of receipt of goods or services by the debtor.

It is also possible to sell a debt whose due date has not yet passed. So it is always worth monitoring the status of all transactions. Taking the help of professionals will be more beneficial when the decision is made quickly. When you have a suspicion that a transaction is inconvenient and you are unlikely to recover the money owed, it is a good time to sell the debt. This will help improve the financial health of your business.

Limitations on the Sale of Receivables

Unfortunately, Polish law also outlines several restrictions on the sale of debt. The main one is the regulation that a debt arising from an employment contract cannot be sold. However, when the debt arises from invoices, in such case there are no restrictions. Of course, there is also the possibility of an entry in the contract between the contractors, stipulating the prohibition of assignment. Such actions are currently the subject of dispute, but still remain fully legal.

Another important piece of information is that the sale of debt can take place without the consent of the debtor. He can not prohibit such a transaction, and also refuse to process his data in the proceedings. For this reason, this process is usually a quick way to effectively deal with unreliable payers. This allows you, as an entrepreneur, to focus on your business. However, it is important to remember that the debtor must always be informed about the sale of the debt. The responsibility for contacting the debtor is decided at the stage of drawing up the assignment agreement.

Is it worth selling a debt?

Of course, the biggest advantage of selling a debt is the time you save. The debt collection process can sometimes drag on, and postponing a fight with a debtor decreases the likelihood of recovering the money. The worst case scenario is that the debtor declares bankruptcy or goes out of business. Debt collection also means additional costs. Therefore, it is worth considering cooperation with a reputable company which offers debt repurchase. Our office, in addition to efficient service, can provide:

• an established market position and years of experience,
• a team of specialists worthy of your trust,
• all elements of the sale are taken care of, e.g. interest calculations.

We guarantee more than just a place that acts as a popular debt buyer. With us, you don’t need to know the sequence of proceedings and legal steps. With us, you will unfreeze your money and keep your business running smoothly. Tell us about your case and see how we can help you.