Posted on October 2, 2017 by Brett
Once a loan or lease reaches the charge-off stage, many companies sell them to commercial debt buyers. It’s a cost-efficient way to handle non-performing loans and leases that also generates money to fund more lucrative activities within the business. Just make sure the buyer or broker you are considering is a reputable one.
Like every profession, commercial debt buying has its good and its bad. Most commercial debt buyers and their brokers are reputable but a few are unscrupulous, and those few can create major problems for the lenders and lessors who deal with them.
I’ve seen some brokers show around portfolios without having signed non-disclosure agreements (NDAs) with the sellers, and in those cases our company, like other reputable buyers, refused to do business with them. In a few other cases, parts of portfolios have been sold off without the sellers’ consent.
Fortunately, separating the good from the bad is easy. Use this commercial debt checklist to ensure you are dealing with reputable buyers and their brokers.
Follow these steps and you will find reputable commercial debt buyers and brokers who will turn your non-performing loans and leases into cash.
Brett Boehm is CEO for TBF Financial.
He can be reached at firstname.lastname@example.org, phone 847-267-0660 or via LinkedIn.