TBF Financial, a buyer of charged-off equipment leases and loans, has created a new online method for industry executives to learn the sale price for their uncollected leases and loans.

TBF will buy charged-off accounts up to three years old. The company will review submissions it receives online and follow that with a price subject to completing its due diligence.

“Obtaining a price online does not obligate the interested seller to sell.  It only gives them an idea what their charged-off accounts are worth.  If they want to consider selling, they then can so inform TBF, and the due diligence process will commence,” said Robert Boehm, a principal and founder of TBF Financial.  “Sales will usually be closed in seven days after submitting the due diligence information.”

While lease charge-offs went down to 0.7% at the end of 2011 from a peak of 2.5% in 2009, according to data from the Equipment Leasing and Finance Association, the selling of charge-offs represents an ongoing need for many equipment leasing and finance companies.  Selling recoups significant losses and reinforces overall profitability, Boehm said, noting that the gain is immediate for the sellers.  Recoveries on charged-off accounts are profits for accounting purposes and go directly to the seller’s bottom line.

“Selling charge-offs that collection agencies cannot collect turns worthless assets into immediate cash and profits, and for forward flow arrangements, selling charge-offs becomes a budget line item of revenue that the seller can count on,” Boehm added.

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