Why selling debt is advantageous to creditors
Why selling debt is advantageous: EverChain’s 5 Whys Framework
- Why Sell Debt? Monetize your debt instantly and create an additional revenue stream to immediately put that money into new loans.
- Why Use a Broker? You don’t have to use a broker. You can go directly to a buyer. But how do you know you are getting the best price? Get the best net price from multiple buyers or agencies due to the competitive nature of multiple buyers bidding. Also, a broker knows the buyer’s historical track record and reputation. They can be a trusted advisor and resource to creditors.
- Why Oversight and Compliance? As a debt seller, you are responsible for having a post-sale process in place to identify the chain of custody until the loan is paid in full or settled in full. Do you know where your sold accounts are? Do you have a way to track the chain of title after resale?
- Why Technology? Technology enables creditors and buyers to be more compliant, efficient, and effective. Using a technology platform allows for transparency throughout the debt sale process.
- Why Now? Because the fresher the paper, the higher the value.