Where as Account Receivables Financing supports the ongoing financing of current accounts receivables, Debt Purchasing is usually reserved for the sale of delinquent receivables where normal collection efforts may no longer be a cost effective option.

Debt Purchasing has two major benefits:

• Delinquent receivables with a low collection potential are removed from the balance sheet
• Rather than writing off a total loss, a salvage value can be received through the sale of the delinquent receivables

For certain companies that have experienced a large set of accounts receivables that remain uncollected, debt purchasing can be a very quick way to clean up the financial statements.

There are many debt purchasing companies that are looking to purchase delinquent account receivables. Please contact Stellar Risk Management through our inquiry form or by phone. We will be very pleased to discuss this very useful credit risk management tool with you.