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Debt Purchase | Selling Your Debt’s – Is It Worth It ?

Debt Purchase debt purchase 1

Debt Purchase – Is it worth it? (Spoiler – probably not!)

Most businesses have some kind of debt collection process in place for problem clients. Often, matters can be resolved by an in-house accounts team and business continues as normal.

Sadly, every business has a number of ‘bad payers’. Despite the best efforts of your staff, customers can sadly delay payments to a point where it begins to cost you more money to chase and reclaim it than the debt is actually worth.

This usually leaves businesses with the difficult decision of whether it is worth continuing to chase the debt and reclaim the money owed (at a cost), or consider other options.

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Our friendly team of Debt Collection Experts are happy to help you today,


The foremost option is to contact a debt collection agency who can recover the debt quickly and effectively.

You can rest assured that the matter will be resolved swiftly, and with the correct debt collection agency working on your behalf, your reputation and relationship with the debtor won’t be damaged (therefore not compromising any future business opportunity).

Some agencies offer a service known as a ‘debt purchase’. A debt purchase is where a business makes the decision to cut its losses, and then sell the debt to a collection agency.

They immediately get an amount from the agency who inherits the debt, and their in-house credit control team can move onto other tasks.

Whilst this may initially sound appealing, as usual there are some important points to consider. Our team of debt collection experts have put together a short guide on the subject of debt purchase.

Debt Purchase debt purchase is it worth it

Debt Purchasers UK – What You Need to Know

Selling A Debt to A Debt Collector UK

As we’ve already mentioned, the decision to pursue a ‘debt purchase’ option is usually made when all other perceived options have been exhausted.

The benefit of a debt purchase is that the business owed money can recoup some of the amount that they are owed quickly, effectively cutting their losses quickly.

Whilst this sounds like a positive, any chance of recovering the full amount is lost, and the opportunity to outsource collection of the debt is also gone.

Obviously, the best outcome for any scenario involving debt for those who are owed money is the full recovery of that amount, with as little cost incurred as possible (both in time and money).

As well as this, the best scenario also means that the matter is settled professionally, with both parties happy with the outcome.


Agencies such as Federal Management act in the most professional manner possible, recovering a client’s debt in the most expedient manner, whilst also maintaining positive business relationships.

Buying Debt Explained

You may ask yourself the question, why on Earth would somebody willingly buy my debt?!

The answer is simple, it’s a good source of income for many specialist debt collectors!

Let’s look at a breakdown of a typical debt purchase:

Debt Purchase debt purchase cost breakdown

Whilst in-house credit control teams are often very good at chasing unpaid invoices, they usually have a limit on what they can use to make a debtor pay.

After a certain point, the collection process for in-house teams begins to cost too much in time and money.

For a debt collection agency who specialise in debt purchase, buying a debt at a low cost is a very good option. They have the means to collect the full amount, therefore they profit from the difference.

Again, the prospect of selling a debt on may seem like a good idea, but consider that more often than not it’s actually a better idea to outsource collection of a debt.

The benefit of doing so is that you stand to receive the most money back possible, as opposed to just a fraction of what you are owed. It’s even better if the agency you choose is regulated by an organisation such as the Financial Conduct Authority.

After all, why would you settle for less than you deserve?

Should You Sell A Debt Owed To You?

In our expert opinion, it’s a significantly better to go down the route of a debt collection agency instead of selling your debt’s outright.

Let’s look at the options side by side:

debt purchase

Debt Recovery – Handled By The UKs No1

Whilst there are certainly advantages to a debt purchase option, it’s clear that the best results possible can be achieve by outsourcing a debt to a debt collection agency.

To speak with one of Federal Management’s friendly debt collection experts, please call 0333 043 4425, or visit our enquire now page for a free debt assessment.

Get Expert Help From Expert Debt Collectors Now

Our friendly team of Debt Collection Experts are happy to help you today,