Some collection agencies buy debt portfolios, but this model is more prevalent in consumer collection than in B2B commercial recovery.
A debt buyer acquires non-performing receivables from the original creditor at a steep discount — typically 5-30% of face value depending on age, documentation quality, and debtor profile. The buyer then recovers what it can, profiting on the spread between purchase price and actual recovery.
B2B commercial claims are individually larger, require more case-specific assessment, and may involve ongoing commercial relationships the creditor wants to preserve. Consumer debt portfolios are homogeneous and tradeable in bulk; commercial portfolios are bespoke.
For most B2B creditors, contingency collection offers superior economics. The creditor retains claim ownership, pays commission only on actual recovery, and benefits from the full upside if the debtor pays in full. Debt sale sacrifices potential recovery for immediate (but discounted) cash.
Portfolios of aged claims (12+ months) that have been through amicable and legal collection without success. Claims the creditor wants removed from the balance sheet for accounting reasons. High volumes of small-value claims where individual collection isn't economical.
Our debt recovery agency with over 21 years of experience provides: Business to Business Collections Services, Legal Debt Collections and worldwide Skip Tracing services.
