Lack of sufficient cash to settle bills and basic purchases , loss of fixed income or overestimation of its financial capabilities … According to the research carried out by the KRUK Group, the most common reasons for indebtedness among Poles. Such financial problems make many people “dizzy” – they not only drain the contents of the wallet, but have a destructive effect on the psyche. How to effectively get rid of the debt burden?
Long – an effective demotivator in everyday life …
From year to year, the indebtedness of Poles is growing at a dizzying pace – not only in private life, but also in the pages of economic activity. Ba – these are not only financial problems, in the form of unpaid loan or loan installments, but also invoices regulated with a long delay. And you probably know that such activities often “torpedo” the development of your own business. Nonetheless, creditors have many effective tools to enforce repayment. However, they must be careful about the dates of their validity, which often expire .
Therefore, when the situation is getting more and more out of control and you do not see any optimal solution for yourself, it is worth thinking about selling debt. First of all – it will allow you to deal with overdue payments and, secondly, it will guarantee financial liquidity to the debtor! There is only one thing left – you need to know in which situations it is the most profitable and what the sale of receivables looks like! Unfortunately, many offers of entities proposing to buy liabilities depart from the actual reality – which means that not all debts will find their buyers …
Purchase of debt – how does the sale of receivables look like?
One of the solutions for the sale of receivables is the assignment, i.e. transfer claims , which is regulated by the Civil Code. On its basis, the debt, after the earlier conclusion of the contract, is transferred to a third party, i.e. an assignee. This may be, for example, a debt collection company. Importantly, the transfer of obligations to another entity is possible only by:
- Sales contracts
Thus, the components of the agreements consist, among others payment terms set by the price with exact payment date and ways of explaining any conflict. The key issue is also to attach a relevant clause to the document stating whether the given assignment is non-refundable or non-returnable! How is the difference between them?
Repayable return and non-returnable!
In the case of signing a contract with the indication of a repayable assignment, the debtor transfers ownership of the debt to the debt collection company only for a specified period of time . This method of solution also has an effective psychological background. How? And, acting as the ‘owner’ in the process of collecting payments may trigger the debtor’s desire to regain the rights, which is associated with the timely repayment of the debt. It is also important to include in it specific provisions that refer to the return of the transfer.
From the entrepreneur’s point of view, a definitely better option is signing a non-returnable assignment agreement. In this situation, you will immediately receive the appropriate amount, and in addition you do not have to worry about the effectiveness of the debt collection. Do not forget to create it in the form of an indisputable claim!
How to ” catch” a buyer?
If you are wondering how to sell your debt profitably – we have two valuable tips for it!
- Familiarize yourself with many offers on the market and make a preliminary comparison – especially in terms of price and payment date ,
- Try to find the debtor of your debtor. In the end, the purchase of a debt may prove to be a good way for him to offset the liability. For example, because the debtor of your debtor will not have to return the money and free himself of the debt, for a decidedly lower price.
But not every debt can be sold!
It is relatively easy to form a debt transfer agreement. However, it is not always possible to sell debt … Debt collection companies scrupulously verify potential debtors. In the end, they need to be sure that they will be able to recover their receivables. For this purpose, it is very important to collect the necessary documents and certificates that confirm the existence of a claim. Do not forget to provide information about your debtors – including contact details and contact details. Thanks to this, the sale of receivables, although related to considerable costs, can be profitable.
The largest “taking” on the debt collection market have relatively “fresh” claims, ie those originating from a maximum of a few months ago, and these:
- Which are not expired
- They can be enforced before a court or other state entities
- They do not have many creditors who started enforcing claims
- Enforceable in case of sale (the debtor should own some property!)
Debt claim, is it worth it?
Despite the fact that everyone cares about having a flawless financial situation – the most important thing is not to let the hopeless and virtually “no way out” situations happen. The same is with debts – it is wonderful not to have them, and when you become their owner, you are “strapped” and try to do everything to solve them. Then, some decide to sell debt, which will not always bring benefits …
Many debt collection companies do not accept debtors with open arms. Usually, they decide to buy those receivables that are likely to be successful. Therefore, before the recovery itself, it is worth to pay particular attention to the entire documentation, which confirms the validity of the debt. Thanks to this, there is a greater chance of recovering lost money. A common practice in the transmission of evidence is to prepare a protocol with an exact list of source documents. In this way, the debt collector will not request additional certificates that have not been included in any contracts.
NCD – or the National Debt Center
A public online platform that deals with the verification of claims is the National Debt Center . Its key assumption is the ability of creditors to add any indebted commitments and … sell them. However, not only they have access to it! Every payer can look into NCD, who wants to check for free if his debt is in this register. However, this requires quick registration, which is preceded by identity verification. What can you gain by looking at the National Debt Center? And, check the information about your payments, and you have the right to withdraw the offer of your debt from the NCD platform! It is worth adding that the register also has an educational dimension. He is rich in tips and solutions to help debtors get out of the “debt loop”.
Or maybe the debt exchange?
The online debt exchange is an alternative solution to the assignment of debts. The basis for its functioning is the Act on disclosure of economic information and exchange of economic data from 2010. Under it, the debt exchange is an ordinary register containing offers of receivables put up for sale. Such a method of debt collection is relatively quick and effective – and above all brings many benefits. Why?
Debt exchanges are mostly websites, run by professional institutions that are involved in obtaining overdue liabilities. And on such websites, each creditor can make his offer for sale of debt available. They are most often:
- Notes about unsettled liabilities
- Information about entities that are debtors
Remember, however, that the resale of liabilities takes place at a price definitely lower than the nominal one. And after the purchase of the offer, the new owner can start applying for the claim on his own behalf. Most often such “bargains” are bought by debt collection companies – but what’s interesting, from the legal point of view, any person, even private, can become their owner!
The sale of outstanding liabilities is as possible – there are many financial products that you can customize. Just remember that this is a fairly expensive option and you have to reckon with the loss of up to several dozen percent of the value of your commitment. Therefore, before any sale of receivables, rate all “for” and “against” such action. Perform thorough research on the market, along with comparison of offers and before the entire collection process begins – take care of the collection of the most accurate documentation. Thanks to this, you will have more room for maneuver when negotiating a very good sale price!