Always run the data against bankruptcy, deceased, and military service databases before finalizing a purchase.
Lenders bundle thousands of delinquent accounts (credit cards, medical bills, personal loans) into portfolios.
In the US, licensing is state-by-state. Even if you don't contact debtors directly (passive owner), many states still require a debt buyer or collection agency license.
Platforms like Debexpert , DebtX , or Everchain aggregate portfolios from multiple sellers for qualified buyers.
You can either collect the debt in-house or outsource it to third-party agencies. 2. Where to Buy Debt Portfolios
Portfolios are priced based on recovery likelihood, age, and documentation. You typically pay between 1 to 10 cents per dollar of face value.
Disciplined buyers typically target a 12% to 20% net internal rate of return . How to Start a Debt Buying Business Model: Operator's Guide
Upon purchase, you receive a "data tape" with borrower names, account numbers, and balances.
