Process Information
Hilco Receivables offers higher up-front guarantees, our exclusive UPSIDE SHARINGTM feature and the promise of maximum net realizable value on a portfolio of receivables. We have developed and perfected a performance-assuring process.
A portfolio review and valuation estimate
You provide a profile of the accounts we will purchase. We review each account and use experience-based prediction techniques to evaluate collectability. We then establish a portfolio valuation estimate range and offer it to you for consideration before moving to the next process step.
Data analysis
A detailed analysis of all portfolio data precedes actually pricing your portfolio. You provide Hilco with a data disk that has been "scrubbed" of all accounts which should be excluded as a result of bankruptcy, death, fraud, litigation or having already been released. Hilco analyzes the data and determines whether any questions or issues need to be addressed and resolved prior to pricing.
On-site due diligence
Hilco Receivables principals "get behind the numbers" through interviews with your business managers, collection managers and collection agents to learn about your industry, market conditions and the products you sell, as well as current collection practices. They will also conduct test audits to determine the accuracy of account balances and the number of accounts on partial-pay status.
Portfolio pricing and contract negotiation
Hilco provides you with a standard purchase and sale agreement. Once you have reviewed the document, any issues in need of further discussion are addressed and resolved prior to consummation of the sale. We then use our due diligence results and proprietary internal modeling programming to arrive at a final portfolio price, which we provide to you.
Final portfolio review, contract execution and funding
Upon your acceptance of our bid, contract terms are finalized and a settlement date is scheduled. You then supply to Hilco a final account disk, which we review for material conformity with the original portfolio. Presuming no variances, the contract is signed and your guaranteed funds are wired, immediately.
The collection process begins
Hilco's own collection staff begins its work. Periodically, and until they are done, you will receive reports on their progress.
Process result: we deliver a higher the net realizable value on your accounts receivable portfolio.