Does your business have a lot of uncollectible accounts? If so, you may have written them off in your mind and in your books, but there is a way you could get some money for them. Selling uncollectible debts to a debt portfolio buyer is a guaranteed way to get something from your debts. Here are three things you should know before going through with this.
The amount you will get
The big question is how much are debt portfolio buyers willing to pay for uncollectible debt? The answer to this is that it varies. If the debts are somewhat current, you are likely to get more for them than if they are old.
According to The Federal Trade Commission (FTC), debt buyers purchase debts for around $0.04 on the dollar. If the debt is over 15 years old, they are not likely to pay you anything for it. The best way to use a debt buyer is to sell your accounts soon. If you write them off after 120 days, sell them right away. You will receive more money handling it this way than if you wait for years.
Information can be limited
The second thing to know is that because you are selling the accounts for a low price, you do not have to spend a lot of time researching the accounts. In other words, if you don't have a current address for some of the accounts, that is alright.
Debt buyers fully understand the risks involved when they purchase debt. This is one of the reasons they pay low prices for it. They understand that some of the information you provide might be inaccurate, or that some information might be missing completely.
Your work is eliminated
Finally, you should understand that even if you do not receive a lot of money for these accounts, your work is eliminated. You will no longer have to keep these dusty files lying on your desk, and you will no longer have to worry about what the outcome will be. You will have cash in your hand, and the debt buyer will take over the collection process. This is one of the main benefits offered through debt portfolio buyers.
If you are interested in finding out what your debt is worth, contact a debt portfolio buyer (such as VION Investments). This company will give you a quote for your debt, and you will be able to turn these uncollectible accounts into cash.