About Portfolio Investment Solutions; Your Trusted Debt Sales Broker

Debt buying is the process of purchasing charged-off or delinquent consumer debt from original creditors or other debt owners at a discounted price, typically pennies on the dollar. When you buy debt, you acquire the legal right to collect on those accounts. The debt buyer then attempts to recover the full balance owed, and the difference between the purchase price and what’s collected becomes the profit. Debt portfolios can include credit card debt, auto loans, medical bills, telecommunications accounts, and other consumer receivables.

When evaluating a debt portfolio, key factors include: the age of the accounts (fresher debt typically performs better), the type of debt, the quality and completeness of documentation (account statements, charge-off letters, chain of title), the debtor demographics and geographic distribution, compliance history, and whether the debt has been previously worked by other collectors. It’s also critical to review sample data files, understand the media (electronic vs. paper), verify licensing requirements for the states involved, and ensure proper legal documentation transfers with the purchase.

Debt portfolios typically sell for 2% to 15% of face value, depending on factors like debt type, age, and quality. Fresher, higher-quality debt commands premium prices, while older or previously worked portfolios sell at deeper discounts. Experienced debt buyers often target collection rates of 2-3 times their purchase price over the life of the portfolio. Additional costs to factor in include legal fees, skip tracing, compliance systems, staffing, licensing, and bonding requirements. Working with an experienced debt broker can help you negotiate better pricing and terms while avoiding costly mistakes.

Companies typically sell charged-off debt when accounts have been delinquent for 120-180 days and internal collection efforts have been exhausted. Selling debt allows you to immediately recover a percentage of the outstanding balance, remove non-performing assets from your books, reduce collection overhead costs, and free up resources to focus on your core business. Many creditors establish regular debt sale programs on a quarterly or semi-annual basis to maintain healthy balance sheets and generate predictable recovery revenue.

Portfolio value is determined by multiple factors including: account balance and volume, age of the debt (time since charge-off), debtor credit scores and payment history, geographic distribution, type of debt, quality and completeness of documentation, state licensing requirements, whether accounts have been previously placed with collection agencies, and current market conditions. A debt broker can help you package and position your portfolio to maximize value by conducting a thorough portfolio analysis, identifying the right buyers, and creating competitive bidding situations.

To sell debt portfolios, you’ll need to provide comprehensive documentation including: detailed data files with account information (names, addresses, social security numbers, balances, payment history), original account agreements or terms and conditions, charge-off statements, chain of title documentation proving ownership, compliance records, and any relevant correspondence with debtors. Buyers will conduct due diligence to verify data accuracy and legal compliance. Well-documented portfolios with complete media command higher prices and attract more serious buyers. Working with a debt broker ensures your portfolio is properly prepared and presented to maximize sale value.