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DEBT PORTFOLIO SALES |
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Bad debts are enormously costly. Lost repayments constitute about 85 percent of the total, but lenders also bear the operating expenses of their recovery processes - legal and staff costs, for example - and the opportunity cost of the capital idling in the loan.
In 2000, the cost of the bad debts of European banks equalled roughly half of their total profits and it is for this very reason that both consumer and commercial lenders are eager to offer portfolios for sale. Now with such high delinquencies, there are many new buyers and sellers to service.
CPL acts as a broker for primary, secondary and tertiary charge-off portfolios. For a seller we have immediate access to the senior directors of the major acquirers in the European market. We can provide advice on likely interest in packages and how best to approach structuring the portfolio to maximise its value. To the buyer we can offer our expertise in the valuation, due diligence and contract stages together with the identification of potential forthcoming sales that would be of interest.
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