If you are in the position of the person responsible for collection of receivables in your company, you restructure the firm, whose property you took over or for whose management you are liable, you are the insolvency trustee, member of creditors committee or liquidator, you usually face the question, how to resolve receivables after maturity in the best way. So far, only the possibilities of their sale, court or out-of-court collection were available.
In case of sale of receivables, it is usually a problem to identify their real price, the tenders are very demanding, the approval of other co-owners and other persons with decision making power is necessary, there are very different ideas about the price between the seller and the buyer, there might be some relation of the buyer to direct debtors, etc.
In case of court collection, it takes a very long time from the day of legal action start until executable judgement and also the costs for this form of collection are high. In case of out-of-court collection, you risk the return of non-performing receivables, which the collection agency did not resolve, back to the creditor, without any yield.
The contractually guaranteed yield from receivables will secure a fixed income to you regardless of our success at the collection whereas we have to keep the contractual conditions how to dispose with your receivables.