What is debt purchase?
Despite the range of debt collection methods available to businesses, once a customer delays payment beyond agreed terms, there will occasionally be those that are just too difficult, time-consuming or costly to recover in-house.
Debt purchase offers businesses a useful alternative to simply writing off debts once the decision is made not to invest any more time and resource into chasing customers for payment.
In this event, debt purchase companies could buy the debts from a business. This tactic ensures that a portion of the overall value is recouped immediately by the seller, and removes the burden from its credit control team.