While some people want to be rid of their unpaid receivables, others have turned them into a business: buying debt at a discount is one of the most profitable alternative investments in Ireland when done properly.
The business model
It is simple: buy a receivable for a percentage of its face value (say 40%) and recover a larger amount — by negotiating a partial settlement with the debtor, enforcing through the courts, or waiting for the debtor's finances to improve. The difference between what you paid and what you recover, minus costs, is your return.
Example: you buy a €15,000 debt with a Circuit Court judgment for €6,000. If you recover €12,000 through enforcement, the gross return is 100% on the capital invested.
Who buys debt in Ireland?
From large funds acquiring bank portfolios to solicitors buying individual receivables to enforce with their own resources, plus specialised private investors. You do not need to be a fund: many deals on Debtalia are for amounts between €2,000 and €50,000.
The four keys to valuing a deal
- The debtor's real solvency: check trading status, assets and charges before offering.
- Documentary quality: insist on seeing invoices, contracts or the judgment before signing.
- Litigation status: is there a Circuit Court judgment? Enforcement under way? A judgment mortgage?
- Limitation: check the 6-year period under the Statute of Limitations 1957 and any acknowledgement that restarts it.
Risks to bear in mind
The main one is obvious: not recovering your investment if the debtor is insolvent. Also: legal costs if you have to litigate, long recovery timescales, and the need for legal know-how. Diversifying across several smaller deals mitigates the risk.
How Debtalia works for buyers
Debtalia is a marketplace that connects buyers directly with sellers — it does not sell its own debt. Listings show the amount, price, kind of debt, region and available documentation, while remaining anonymous until you make contact. You reach the seller directly and free of charge, and negotiate without intermediaries or commission on the deal.
