Thursday, September 24, 2009

Debt Purchasing

What is Debt Purchasing?

Debt purchasing (which is also referred to as debt factoring) is a system whereby debt receivables which a company or individual is liable to receive are sold to a third party who then assumes ownership of the debt in exchange for payment. This can be useful for companies and individuals who are owed money and need the cash urgently, and do not have the time to invest in debt collection services, an alternative solution to debt purchasing.

The Alternative to Debt Purchasing

While debt purchasing can be a useful solution if you are looking to quickly recover some of the debt which is owed to you, the alternative to debt purchasing can help you to recover a greater amount of money. A professional collection agency can collect debt on your behalf, and will usually keep only a fixed percentage of successfully recovered amounts as its fee. Both services may be available from the same service provider, allowing you the freedom to choose whichever solution suits you best.