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AIC FUNDING SOLUTIONS understands the fact that delinquent debt is rising from day to day among retailers, service providers, financial institutions, hospitals and any other business that allows its customers to pay by using credit. This was up to this day but we have some good news for all the services mentioned above how they can exchange delinquent debt for cash up front! Yeah that's true and we can help to bring your business service back on tracks! We can help to get back the lost confidence about that delinquent debt and bring back the big smile! That's "PERFECT" and this is AIC FOUNDING SOLUTIONS making it real!
-DELIQUENT DEBT (Delinquent consumer debt is money owed when an individual uses credit to buy products or services, then defaults on paying back the bank or company that extended the credit. The term "delinquent debt" or "bad debt" refers to debt that is more than 300 days overdue. Debt that is less than 30 days overdue is not categorized as delinquent.)
PRINCIPLES OF DELIQUENT DEBT
PRESENTATION OF OUR SERVICE
AIC FUNDING SOLUTIONS works with institutional investors that purchase delinquent debt portfolios for cash. These funding sources specialize in buying bad debt portfolios but however, some of them also offer additional services. We bring all parties under same umbrella and working together on the best interested of our customers. We can help you locate a funding source that meet your needs.
Before going any further lets point out who are good sources of delinquent debt. Here's a list of the most common delinquent debt sources:
- Credit Card Charge Offs. Credit card charge offs are created when a bank or retailer decides it is no longer profitable to collect on it's customers' outstanding credit card debt. Banks and retailers sell these charge-offs for pennies offs for pennies on the dollar.
- Student Loans. Student Loans are offered by privately-owned truck driving schools, culinary institutes, pet grooming schools, cosmetology schools, bartending schools, and other technical or vocational schools that provide in house financing to their students. funding sources purchase only non-GSL (Guaranteed Student Loans loans).
- Retail Installment Contracts. These are agreements between retailers and customers to pay for goods over time.
Additional sources include:
- Utility companies (unpaid gas, electric, and phone bills)
- Health club membership
- Bad checks
- Automobile loan deficiencies
- Travel club and health club memberships
- Judgments (resulting from lawsuits)
All delinquent debts have a "Performance Level" which refers to the length of time debt is delinquent. the three performance levels for debt are:
- Performing Debt. This debt is no more than 30 days overdue. This type of debt is incurred in the normal course of business and generally does not impose a burden on the creditor.
- Sub-Performing Debt. This debt is from 30 to 120 days delinquent. these accounts are labor-intensive and expensive for companies to maintain.
- Non-Performing Debt. this debt is more than 120 days delinquent. Companies generally write these debts off after 180 days.
The higher the classification of the debt with regard to performance, the higher the offer will be from the funding source.
There is also what is called "Placement Level" which refers to the number of times, if any, debt has been placed with an outside agency for collection. The following terms are used to describe the placement level:
CLASSIFICTION: COLLECTION HAS BEEN ATTEMTED BY
Zero No outside agencies
Primary One outside agency
Secondary Two outside agencies
Tertiary Three outside agencies
Quad Four outside agencies
BENEFITS OF SELLING DELIQUENT DEBT
It provides immediate cash for the business. The business no longer has to wait to collect a percentage of the accounts when and if they are paid.
Allows the business to turn a liability into an asset
Removes the collection burden from the business' shoulders. Few business have expertise in collections or in-house employees to handle collections. By selling bad accounts, they no longer have to tackle the collection process.
Relieves the business from the concern that they will alienate their customers through in house collections efforts.
COSTS OF DELIQUENT DEBT
Funding sources that purchase delinquent debt must be aggressive in their contact with the debtors and often work out compromises with them in order to recover all or part of the debt. They are often trying to collect on debt where previous collection efforts have been unsuccessful.
Because of the risk and skills required to collect on these debts, funding sources will generally offer between 1/2 cent and 10 cents on the dollar. Our prospects should understand one thing, because of the above risk there are substantial discounts. After we gather the information about the debt portfolios we submit it to the funding source for a bid. The funding source on the other hand will take care of negotiating the purchase price of the portfolio. Our concerns are to evaluate the most approximate value of the portfolio in order to give our customers a realistic expectations.
THE DIFFERENCE BETWEEN
SELLING DEBT AND COLLECTIONS
Placing debt portfolios with investors is not the same as placing them with collection agencies:
- Placing portfolios with collection agencies causes the business to be doubly exposed from a liability perspective.
- Collections agencies typically work on a commission basis, earning a percentage of the amount they are able to collect. Uncollectible accounts, however, revert back to the business.
- Selling delinquent accounts removes the seller from the picture entirely.
- collection agencies rarely collect money on all accounts. Funding sources, however, will pay immediate cash for every legally collectible account.
We understand more than every body else the importance of collecting the delinquent debt. We can't promise full refunds on the delinquent debts and we don't do collections but what we can promise and what we can do has to do with the fact of buying debt portfolios for cash based on your needs. It's always a "WIN-WIN" situation and we're here to make it real!
AIC FOUNDING SOLUTIONS
THE GATEWAY TO YOUR FREDOOM
FREE, No Obligation Consultation!
Contact the Professionals Today at 215-964-7667 or
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