Debt Buyers are an integral part in the dynamic relationship between credit and collection as they provide an immediate solution for creditors’ past due obligations. Yet, with the exception of put backs, Debt Buyers work within a “no returns” environment – once made, the financial commitment to purchase a particular portfolio must be primarily offset by the collection results obtained from the debtors within that portfolio.
Consequently, assigning a fair but realistic value to every portfolio acquired is critical. Any miscalculation will result in unavoidable losses and possibly limit future opportunities. For these reasons, DSI represents the more precise means to accurately complete the due diligence process and model portfolio purchases.
For example, let’s assume that two portfolios are under consideration. Using the DSI database, it’s determined that one portfolio has several times the number of debtors currently participating in DMP/ DSA programs. All other factors being equal, the portfolio with higher DMP/DSA participation would clearly represent the more likely, safer and immediate opportunity.
Once purchased, the DSI database will also prove invaluable in effectively segmenting the portfolio and prudently assigning these segments to the Debt Buyer’s most appropriate collection law firms and agencies. From beginning to end, DSI will be of enormous assistance to Debt Buyers by ensuring that their purchasing decisions yield consistently improved results. |
