Why debts sell at a discount (and how much is reasonable)

When you sell a debt you almost never receive its full amount. The buyer pays less than the face value, and that difference is the discount. It is not a rip-off: it is the logic of risk.

What the buyer is really paying for

The investor takes on two things: the risk that the debtor won't pay and the time it will take to collect. In exchange, they buy below face value. The higher the risk or the longer the collection, the bigger the discount.

What range is reasonable

• Solid, recent debts with good evidence: moderate discounts.
• Old debts, with no paperwork or doubtful debtors: bigger discounts.
• Debts with a final judgment: usually keep more value.

How to get a smaller discount

Provide complete documentation, sell early, and list on a marketplace with many investors so they compete for your debt. Competition between buyers is what drives the price up.