Discover hidden value

Debt Sale

When your own collection processes have concluded, you will be left with uncollected debts that are typically written off. Selling these debts to a reputable purchaser, with a focus on treating customers fairly, can deliver significant P&L improvements.

Over the past ten years, we have worked with many energy companies to help them realise value hidden within their aged-debts. If you want to support your bottom line through debt sale, we will work with you to select the right accounts to sell, use the right data to improve your portfolio, and select the right debt purchasers to engage with.

When embarking on your first debt sale, it is important to get all stakeholders aligned:

  • Tax and financial reporting – ensure they are comfortable with the relevant B2C and B2B tax treatments and reporting requirements

  • Regulatory compliance - ensure the contract has the appropriate regulatory protections

  • Collections - ensure the operational collections teams can manage the process and post-sale requirements

 

Our ‘Debt Sale for First Time Sellers’ programme helps suppliers navigate these crucial steps to deliver a successful debt sale. For experienced debt sellers, we help with segmentation, data augmentation, and value modelling to drive an increase in valuation.

Who do we work with?

 

Our clients range from the largest utility incumbents to the fastest growing utilities, covering both the domestic (B2C) and business (B2B) markets.

Our clients typically have a portfolio of around £50m of debt they want to sell, but it could be as low at £10m and in some cases as high as £500m.

Our clients look for us to deliver a successful sale outcome. We put significant effort into data analytics, customer segmentation, and running the debt sale programme.

For smaller portfolios we may be able to provide you with some initial advice and potentially an outline strategy to assist you.

How do we drive value?

As well as ensuring you make the right accounts available for sale, at the right price, and to the right purchaser, we also help you limit any post sale value leakage.

We work with you to limit the amount of post-sale put backs, an account rejected by the purchaser, and buy backs, an account the seller realises they need to remove from sale. We also work with you to make the appropriate data available, limiting the number of post-sale enquiries and allowing the purchasers to maximise collections.

The effort we put into ensuring only the right accounts are sold means the reputational risk to your brand is minimised.

Recent cases:

  • Selling a multi-hundred million pounds debt portfolio on behalf of a Big6 energy supplier, including a multi-year structured forward flow arrangement

  • Selling a large portfolio of B2B debt on behalf of a major energy retailer

  • Selling a medium sized portfolio of B2B debt on behalf of a challenger energy retailer

Discover hidden value in aged-debt for rapid P&L improvement
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