Introduction

Asset Solutions Company, a wholly owned subsidiary of MBD Credit Solutions, is a leading South African participant in the valuation, acquisition and servicing of accounts receivable portfolios.

We offer experience, expertise and the financial resources necessary to assist our clients and potential sellers with the optimisation of the value for a performing or non-performing accounts receivable portfolio.

Reasons for Selling Debt

Most business-to-consumer firms offer some form of credit to customers in order to achieve higher sales volumes and to compete in highly competitive markets. Any firm supplying credit has experience in dealing with delinquent receivables.

The methods employed by such firms in dealing with delinquent receivables include the following:

Internal Collection: The collection of delinquent receivables by internal employees and systems
Agency Collection: The collection of delinquent receivables by an external debt collection agency in exchange for a fee which is generally paid as a percentage of the money collected
Sales: The sale of delinquent receivables to a third party

Internal Collection and Agency Collection techniques have been employed in some form over many years. The market for debt sales is a developing market which offers a firm a compelling alternative to the other techniques.

Part of the Debt Management Strategy

MBD Credit Solutions is a substantial buyer of consumer debt in South Africa. In most cases we buy debt from clients where we conduct agency work for them.

Benefits for selling:

Allows seller to focus on core business
Recognise cash & profits immediately
Balance sheet management tool
- Basel II – reducing capital cost
- Greater certainty over loss provisioning
Reduces cost of collections
Greater budget and income certainty
Eliminates future collection cost variations

Privacy Statement

Access to Information

Privacy Statement