Benefits of Selling
If you're not entirely convinced that selling your distressed debt is the right option, the reasons listed below explain some of the benefits that would result from selling your distressed assets to us:
Selling your distressed assets can result in an immediate cash flow for your firm:
Attempting to collect on a nonperforming loan yourself or through a third-party collection agency means waiting an unpredictable amount of time to see if your efforts will pay off and result in the collection of a payment. However, there’s no guarantee that you will ever see a repayment on this distressed asset and in some cases your collection efforts result in a debt that is still unpaid. Selling your distressed debts that have been recently charged off transforms this uncertainty of repayment into an immediate and predictable cash infusion for your firm. When you sell your distressed assets to a debt buyer, you trade the slow, uncertain process of in-house or third-party collection for the comparatively quick, responsive, predictable process of debt selling that results in an immediate and guaranteed cash flow that can be quickly reinvested into other areas of your business and assets as needed.
Selling your distressed assets will reduce many of your firm’s costs:
Selling your distressed assets and nonperforming loans means that you are no longer responsible for attempting to collect such loans. This reduces and can even eliminate:
~ The various holding, servicing, and administrative costs associated with a nonperforming loan
~ The time and cost of hiring and relying on or managing a third-party collection agency
~ The uncertainty that is inherent in the process of attempting to collect a distressed loan, including the risk of if/when you will be able to collect the debt and receive a payment
~ The uncertainty surrounding the value of an in-house collection process – attempting to collect on the debt through an in-house department who doesn’t have the skill or expertise necessary to efficiently collect can waste valuable time and resources that could be better used on your firm's principal business practices
Selling your distressed assets can improve your balance sheet:
Having nonperforming loans and distressed assets on your balance sheet can be a serious detriment to lenders and financial institutions and as such we at Hylan understand just how important balance sheet management is to creditors. We aim to assist creditors and institutions with this management through purchasing your distressed assets and charged-off accounts. Distressed assets can have a large impact on a creditor's company. Such assets can increase the risk profile of your institution as well as result in a higher risk rating for your company – hampering the process of attracting capital. Removing these distressed assets from your balance sheet through a transaction with a debt buyer such as Hylan will help your firm when it comes to enhancing both your risk profile and rating.