- 20 Jan, 2022
As a lender, selling bad or old debt can be incredibly beneficial. Regulatory requirements in the UK are getting increasingly stringent, so it’s becoming more important than ever to effectively manage your debt portfolio. In a lot of cases, it becomes too costly to collect older outstanding credit, so lenders sell this on to debt collection agencies.
So if you’re looking to sell debt in the UK, EverChain UK can help. When you join our network, you’ll gain access to one of the largest certified buyer networks across the world. We’ll also provide you with our state-of-the-art loan sale management platform, which will allow you to both sell your portfolios and manage all post sale interactions comprehensively.
And if you’re still unsure about whether debt sale is the right course of action for your business, we’ve explored some of the top benefits to selling debt in the UK below!
Achieve Market Value
It’s often difficult to know which debt purchasers will meet your needs, let alone how to find them. And whether they’ll have both the appetite and capital to purchase your portfolios for their market value is another uncertainty.
That’s why many lenders choose to use a debt broker like EverChain UK, who can give them access to a huge buying network. Buyers can bid on your portfolios, so you can ensure you get a great price. And as compliance plays a huge part in the bid selection process, you can also review things like due-diligence and the buyer/agency complaint ratio.
Essentially, with EverChain UK you can not only achieve market value for your portfolio but also ensure that the debts you sell are in good hands. You can rest assured that the customers that are passed on will be treated fairly, and the debt collectors will meet all regulatory guidelines.
Another great thing about selling debt in the UK is that you can significantly reduce your overheads. Your collections team can focus on what they do best - the early stage collections process. This will put less strain on the business, and allow you to use your resources more effectively, saving your time and money. Selling older or more challenging debt should furthermore result in a happier workforce, as your staff won’t be chasing endless bad debt.
An additional benefit of introducing a debt collection agency into your customer journey is that there will be a real consequence for non-payment. This should therefore encourage more engagement from your customer base, as well as increasing early collections rates. Not to mention you’ll be getting an additional revenue stream for your business through debt sale.
At EverChain UK, we understand the importance of compliance, particularly in this world of ever evolving, stricter regulation. Through our due diligence policy, we ensure that we only work with debt buyers who will treat customers fairly at all times. This will mean you can be confident that the buyer’s practices won’t harm your brand, and your complaint rate should remain low.
As no two businesses are exactly alike, we furthermore tailor all our approaches to individual organisations. Your needs and requirements when it comes to selling debt will be specific, and probably subject to change, so we’ll do our best to match you with a debt purchaser suited to these needs.
Selling Debt in the UK With EverChain UK
If you’re ready to start selling debt, here at EverChain UK, we’ve made the process as simple and streamlined as possible. Our platform offers the most comprehensive debt sale solution on the market, with features such as pre-sale due diligence, portfolio marketing, analytics and post-sale compliance.
The first step is to securely upload your portfolio into our platform, which will be masked, reviewed, and scrubbed. You can then set up specific buyer criteria, ready for your portfolio to be auctioned. Next, debt buyers will start bidding, and you can choose the right buyer, based on factors like compliance, complaint trends, and of course price.
You’ll then be able to confirm your agreement with the buyer, and receive funding directly into your account. Finally, our post-sale management strategy, which includes solutions to resolve things like consumer complaints, buy back requests, and chain of title issues, will allow you to have complete oversight of your account and easily address any queries from the buyer.
With EverChain UK, you can sell with confidence, allowing you to start injecting cash back into your business, and stop wasting valuable resources chasing bad debt.