Welcome to the FAQ section dedicated to debt buying and selling on the Debexpert online auction platform. Here, we aim to provide you with comprehensive answers to common questions about the process, benefits, and safeguards involved in purchasing and selling debts through our innovative online marketplace. Whether you're a debt buyer looking for investment opportunities or a seller seeking to efficiently manage and liquidate debts, this FAQ will guide you through the key aspects of participating in the Debexpert auction, ensuring transparency and security every step of the way.
BHPH loans are the most sensitive to the deterioration of the economy, job losses by debtors, and a decrease in the value of the collateral. Therefore, the sale of Buy Here Pay Here loans is a popular way to reduce risks for lenders because it allows fixing the profitability of loans issued and reduces the chances of non-repayment of debt.
The main advantages to sell BHPH notes are:
BHPH portfolios are in great demand among debt buyers today, which allows them to get reasonable prices when selling performing and non-performing accounts. Debt buyers believe that the contact data of debtors is higher than that of other loans because the loan issuance and debt payment took place at a specific location. There is a high probability that this debtor will have fresh contact information and his place of residence is near the loan issuance, which will simplify the tax repossession, if necessary.
Today, demand for this type of portfolio exceeds the supply, because the share of Buy Here Pay Here loans in the auto loan industry is growing. Debt buyers are happy to consider and buy goods using this type of debt. Suppose institutional debt buyers usually buy auto loans. When companies sell BHPH portfolios, the circle of buyers is broader and includes mid-size retail investors and other BHPH dealerships.
Debt buyers will understand this product, so in evaluating the portfolio, there are no questions as a rule. Therefore, the transaction can be closed in a few days when using a professional intermediary.