Frequently Asked Questions
Q: How much of the portfolio sale price is donated to the designated non-profit organization.
A: A minimum of 55% of the sale price for debt portfolios with a small face value up to 80% for larger bad debt portfolios.
Q: What is the risk to the company donating the debt portfolio?
A: None. The company donates accounts that have already been written off and are therefore not assets so the donation does not change or affect the corporate balance sheet. Making the donation is often as simple as running a charge-off debt report. The portfolio sales agreement protects the corporate donor by specifying that the ownership transfer of the receivables is complete, “as is” and without recourse.
Q: Why is the process for medical facility accounts unique and different?
A: Many factors require a completely different framework for medical accounts. Therefore, United Asset Group in consultion with leading industry experts, has developed a system for medical accounts that affords the unique protection needed by hospitals on behalf of their patients. For more information, click here.
Q: What do charge-off portfolio buyers typically pay?
A: There is a wide variation in valuation of these portfolios due to the factors such as age, average balance and type of debt. Most portfolios will sell in a range of ½ cent on the dollar to three cents on the dollar. Price variations above and below this range will occasionally occur.
Q: Once a company decides to donate their charge-off accounts, how long does it take for the NPO to receive the cash donation?
A: As rapidly as 45 days depending on how quickly the company provides the debt portfolio. The sales process itself can often be completed in less than a month.
Q: Why does United Asset Group use other companies to sell the debt portfolios?
A: United Asset Group has agreements with debt portfolio sales affiliate companies for all portfolio sales to ensure the maximum bid prices will be obtained. This assures confidentiality throughout the process. Since bidders on the debt portfolios have no knowledge the portfolios are donated or of the donation process, bid prices for the portfolios cannot be affected.
