Posted by Daniel Lewis on December 08, 2003 at 05:22:10:
I am an accounts manager at a mercantile (debt collections) agency in Australia.
Purchasing AR (accts receivable) is profitable, and I have been setting myself up to begin purchasing retail debt here by myself.
You need to know some of the technical side of collecting AR before buying, otherwise you may overpay if you underestimate the cost of collection or success rate of collection (ie.: what percentage of the total face value will be successfully collected?)
Eg.: Total Face Value (TFV): $10,000
Collection Cost (CC): $x
Success Rate (SR): y%
There are formulae about purchasing, which involves more analysis of the debt.
Are you purchasing some? Where are you located?
Feel free to email me: firstname.lastname@example.org