Selling your defaulted receivables frees up both valuable time and cash that can be better used elsewhere in your organization. PARC offers two basic transaction types:

• Lump Sum Purchase
• Forward Flow

Individual transactions can be further customized to meet your organization’s exact needs.

Selling receivables can be complex, but with PARC’s experience, the process is streamlined.

1) Due Diligence/Underwriting

It is axiomatic that charged-off receivables are a wasting asset, losing value with every passing day. The value of any portfolio is a function of portfolio age, average balance per account, prior work efforts, payer mix, demographics and media availability.

The seller provides PARC with sufficient information for PARC to price the portfolio. In general, the more information the institution is able to provide, the higher PARC can price the portfolio. However we are able to price portfolios on which we have little more than a name, address and balance. Additional information, for example social security and telephone number, results in a higher price.

PARC may also want to perform due diligence on your current operation, to determine how aggressively the portfolio has already been worked. We structure all our due diligence efforts to have as little impact on your staff as possible.

2) Contract

Once the parties agree on a price, the next step is developing a purchase and sale agreement, which specifies all aspects of the sale, including accounts being sold, price, and terms and conditions. PARC has a standard contract or a custom contract can be developed.

3) Account/Funds Transfer

As soon as the parties sign the contract, the accounts are transferred to PARC and the purchase funds are transferred to the client.

4) Post Sale Administration

Typically, there will be a small amount of post sale administrative work. For example, payments made on the accounts to the seller must be forwarded to the buyer. Under certain conditions specified in the contract, accounts may be transferred back to the seller, at either the buyer’s or seller’s option, depending upon circumstances.