Benefits of selling your A/R portfolio
It's a smart business decision to sell receivables. Next to cash, an accounts receivable portfolio can be a company's most liquid asset. However, servicing an A/R portfolio - particularly when it contains distressed accounts -- can be a costly drain on a company's financial and human resources. Selling a portfolio to Hilco Receivables enables you to realize the value of the asset, sooner, and at a substantially reduced servicing cost.
Improve and leverage your cash flow.
- Reduce charge-offs
Income from the sale of receivables can be used to offset gross charge-offs in a given sales period. Managing the timing of a portfolio sale allows you to smooth your reported net charge-off figure.
- Re-deploy capital
Proceeds from the sale of a portfolio can be reinvested in earning assets, further enhancing net income.
- Improve earnings predictability
Eliminating the uncertainties and high costs associated with collection makes predicting earnings far easier.
- Enhance company valuation
A stead, predictable earnings stream almost always leads analysts to enhance their valuation of a company.
- Satisfy bank requirements
Unsecured borrowers can sell receivables to meet the liquidity requirements of a bank loan.
Utilize your people resources more productively and effectively.
- Allow management more time to focus on the core business
Selling portions of your receivables to Hilco eliminates the need to monitor and audit recovery efforts, whether by an internal staff or collection agency. Managers are also relieved of burdens associated with hiring and training collection personnel. Bottom line: managers have more time to focus on managing the core business.
- Enhance the effectiveness of your internal collection staff
Selling your distressed receivables to Hilco relieves your collection staff of time spent on the most difficult to convert receivables and allows them to focus their efforts where recovery opportunities are greatest.
Realize higher recoveries.
- Hilco Receivables has more flexibility
As a debt buyer, we are able to deal with debtors on a case-by-case basis, without being bound by predetermined rules. For example, we have more flexibility to set up payments plans and to offer discounted pay-offs. This flexibility almost always leads to higher recovery rates.
- Distressed debt collection as a principal is our specialty
Hilco Receivables is a leader in the complex world of distressed debt collection. Unlike collection agencies, as the principal buyer of debt we possess the expertise and experience to generate greater recoveries in less time.
Preserve your company's image.
- Poorly executed collection work by an internal staff or third party collection agency can cause severe damage to a company's image. Hilco sidesteps the use of these persistent collection tactics to avoid alienating consumers and creating negative publicity.