When lenders like banks or telecom companies cannot collect on debts (often after 120–180 days), they "charge off" the debt and sell it to recoup some losses.
Disciplined buyers typically target a 12% to 20% net internal rate of return . How to Start a Debt Buying Business Model: Operator's Guide how to buy debt for collection
You can either collect the debt in-house or outsource it to third-party agencies. 2. Where to Buy Debt Portfolios When lenders like banks or telecom companies cannot
You must maintain impeccable documentation proving you legally own the debt to collect or sue for it. 4. Critical Success Factors how to buy debt for collection