However, there is another way forward - forget about chasing these debts, without having to write them off completely. All you have to do is transfer the ownership of the debts to Redwood Collections via BRANCH, our new debt purchase solution.
How does BRANCH work?
Transfer your unpaid debts and we’ll take care of everything from then on. Via BRANCH, Redwood Collections will be the new owner of the debts and the debtor will then owe the money to us, not to you. Therefore, you no longer need to worry about chasing the debt and all the time-consuming admin that involves. You can concentrate on running your business and winning new customers who will hopefully pay promptly.
How do you get paid?
When we collect the debt, we share the proceeds with you on a 50/50 basis. Once you’ve transferred the debt, you can relax and let us do the rest. We’ll send you your share of the proceeds once we’ve received them from the debtor.
Who is the new creditor?
Once you’ve transferred the debt, the creditor will be informed that Redwood Collections is now their legally appointed creditor, and they owe the debt to us. You don’t even have to worry about making contact with the debtor to inform them of the change. We’ll send them a notice of debt assignment on your letterhead, telling them that from now on they should contact us regarding any matters relating to the debt.
Transfer of the debt doesn’t mean that the debtor can argue they’re no longer obliged to pay. All contractual clauses and terms of business relating to the original credit agreement will remain as they were when you were the creditor.
What if the debtor still contacts you?
Once the debt has been transferred, the debtor must interact exclusively with Redwood Collections as we become the new owners of their debt. If you receive any contact directly from the debtor, you can simply refer them to us.
What are the benefits of using BRANCH?
The main benefit of putting unpaid debts with BRANCH is peace of mind. You can relax, with no worries about continually having the chase the creditor, while at the same time having the reassurance that you’ve avoided having to write the debt off completely.
By transferring unpaid debts, you’ll also be protecting your reputation for financial due diligence. You’ll be taking decisive action, rather than simply letting debts sit dormant or writing them off. That’s an important message to other customers who may be thinking they can get away with paying late or not at all.
No business should have to face the prospect of not getting paid at all for products or services supplied. With BRANCH, you can save time and effort in chasing debtors, while avoiding the unpalatable option of writing off a debt completely. It’s a simple way to help your business Grow Stronger.
Attending the ISBA Conference 2023? Visit us on Stand 30 and find out more about BRANCH. Alternatively, visit the BRANCH website for more information.
