When unpaid accounts number in the dozens or hundreds, chasing them one by one stops making sense. The solution used by banks, insurers and utilities is the debt portfolio sale: grouping all the receivables together and selling them as a single block to an investor. And it is not just for big companies — any Irish business can do it.
What is a debt portfolio?
A set of unpaid receivables sold as a single package: for example, all the bad debts of the last three years, or all the unpaid fees of the members of a gym, a clinic or a service provider.
Advantages of selling in bulk
- An outlet for small debts that individually interest nobody.
- A single price: the good debts "pull along" the difficult ones.
- One transaction: one deed of assignment, one buyer, one payment.
- Immediate balance-sheet clean-up of the whole block of arrears.
How to prepare your portfolio for sale
Portfolio buyers always ask for the same thing: a summary schedule (amount, debtor, age, status) and the supporting documents for each receivable. The tidier the information, the better the offers. Classify the debts by type of debtor — companies, individuals, public bodies — and flag which ones already have a court judgment.
What discount does a portfolio carry?
Bigger than a single debt's, because the buyer takes on receivables of uneven quality. Recent, documented portfolios can sell for 20–40% of face value; older or fragmented ones for less. The price is always negotiable and depends on each investor's analysis. General information on debt and your obligations is available from Citizens Information.
A well-organised schedule with a clear breakdown of which debts carry a Circuit Court judgment can be the difference between an average offer and a strong one.
Listing your portfolio on Debtalia
Debtalia is a marketplace that connects sellers with buyers directly, with no commission on the sale price and anonymous listings. You state the number of debts in the package, the types of debtors, the total amount and the asking price. Investors interested in portfolios contact you directly to request the detail and negotiate.
