Many creditors that do not have experience selling receivables portfolios are reluctant to start selling their debt. There have been plenty of negative headlines over the past 5 years, attacking debt buyers and their business models, and inexperienced sellers just do not know where to start. Those creditors that can look past the negative headlines, can quickly find qualified debt sale partners that help the creditor to establish immediate cash flow for otherwise value-less accounts while minimizing compliance and brand risks.
Receivables Management Association Certification
To assist creditors with identifying legitimate debt buyers Receivables Management Association (RMA) has created a comprehensive certification program. The RMA Certification Program sets minimum requirements for debt buyer, collection agencies, law firms, brokers and other receivables professionals that exceed those set by Federal, State and local regulations. Certified debt buyers must meet specific education requirements, have appropriate policies and procedures in place along with a list of other certification requirements. To ensure that certified debt buyers meet minimum requirements, they are subject to third party audits every 3 years, the results of which are reported to RMA. RMA certified debt buyers provide a great starting point for identifying a qualified partner. By selling accounts to a qualified partner, creditors are able to achieve their goals while minimizing associated risks.
Reliable Cash Flow
Creditors can choose to sell accounts in one-off transactions or through forward flow opportunities where their acquisition partner agrees to purchase all the accounts that are reaching a specific point in their lifecycle at a specific time at a predetermined price. Qualified partners can be relied on to have the cash on hand to make each of the purchases, so the creditor can rely on that cash flow from otherwise value-less accounts.
A qualified debt sales partner has a culture that is focused on compliance with the laws and rules that regulate the receivables management industry. There are a myriad of rules that differ from jurisdiction to jurisdiction and require careful study to understand the nuances. A qualified debt buyer understands these rules and has developed systems, processes, policies and procedures regarding the steps that must be taken to comply with these regulations. When selling to a qualified debt buyer, creditors can be assured that they are selling accounts to someone that will manage them with the same level of care as the originating creditor.
National Debt Holdings is the Perfect Partner for Selling Receivables
National Debt Holdings is a professional receivables management company that partners with creditors to purchase and/or manage receivables at all stages of the account life cycle. As an RMA Certified Debt Buyer, they provide a reliable and compliant solution for creditors to create immediate cash flow from otherwise value-less accounts. Creditors can participate the National Debt Holdings acquisitions programs to sell accounts, or creditors can maintain ownership of their accounts and leverage the National Debt Holdings agency and attorney network for contingency debt placements.