Debt purchasing — acquiring non-performing receivables at a discount — is a well-established practice in consumer debt markets. In B2B commercial debt, it plays a smaller but strategic role.
A debt buyer acquires a portfolio of unpaid commercial receivables from the original creditor at 5-30 cents on the euro, depending on claim age, documentation quality, debtor jurisdiction, and debtor solvency profile. The buyer then pursues full recovery for its own account, profiting on the spread between purchase price and actual collection.
Consumer debt portfolios are homogeneous — thousands of similar-sized credit card or personal loan defaults that can be priced actuarially. Commercial debt portfolios are bespoke: each claim involves different contractual terms, jurisdictions, debtor circumstances, and potential defences. Individual assessment replaces statistical modelling.
Aged claims (12+ months) that have been through amicable and legal collection without success. Balance sheet cleanup where removing the receivable has accounting or reporting value. High volumes of small-value claims where individual collection isn't cost-effective. Exiting a market and needing to monetise outstanding receivables quickly.
For most B2B creditors, contingency-based collection (no cure, no pay) delivers better economics. A EUR 100,000 claim might recover EUR 60,000 through contingency collection (minus EUR 15,000 commission = EUR 45,000 net to creditor). Selling that same claim might yield EUR 10,000-25,000 immediately. The maths favours patience in most cases.
Verify: documentation completeness, statute of limitations status in each jurisdiction, debtor corporate status and solvency, absence of genuine disputes, and enforceability of any existing judgments. The discount should reflect the actual recovery risk — not the seller's optimism.
Our debt recovery agency with over 21 years of experience provides: Business to Business Collections Services, Legal Debt Collections and worldwide Skip Tracing services.
