Debt management solutions

Traditional debt purchase, characterised by the outright sale of accounts by the original creditor to a third party, is a common practice within the credit industry. Debt sale can occur at any point following origination, but typically occurs after accounts are charged off by the creditor following an extended period of non-payment on the part of the customer.

The sale of debt to a third party such as Arrow Global offers a number of benefits, both for the creditor and for the customer.  By selling debt via Upfront Account Purchase (UAP), the creditor receives a lump-sum payment for assets that have been written down or off completely.  Additionally, the creditor benefits from a reduction in the internal costs typically associated with administering charged off accounts.

Post purchase, Arrow Global seeks to utilise its data-driven business model to work with each customer to identify and implement the most suitable solution for their individual circumstances.  Arrow Global's bespoke analysis of available data facilitates a commitment to compliance throughout the recoveries process, as this data provides a complete picture of a customer's financial position.  Arrow Global is committed to working with each customer to form a workable action plan.

Where current value is in question either due to a new asset type being sold, or potential economic impact, a shared upside arrangement can bridge the valuation gap between buyer and seller.

Most creditors selling debt prefer the certainty of an up-front purchase model. However, retaining even a small economic interest in a portfolio of accounts can provide a client with valuable recovery information, which is potentially useful for future asset valuation.   Arrow Global's unique data analytics provide for a long-term market-leading collection outcome. Participating in a shared upside sale can provide clients with a new and reliable source of revenue and data.

In 2010, Arrow Global launched Arrow Managed Assets (AMA), an asset management arm of the business offering clients an alternative to debt sale.  AMA enables clients to place assets with Arrow Global for management and utilise Arrow Global's leading data analytics, collection strategies and agency management tools.

Asset management is not offered as a prelude to a debt sale.  AMA is operated on a true managed asset basis. Of course, as a debt buyer, Arrow Global is very happy to consider the acquisition of assets at any time.  However, AMA does not anticipate sale as part of the process.

Arrow Global brings to the market superior data analytics and collection strategies perfected through debt buying activities.  Arrow Global uses data know-how to tailor collection strategies based on each customer's situation.  

Asset management fits well with Arrow Global's collection model.  Arrow Global works with the premier agencies across Europe, each of which offers unique skills in differing asset classes and stages of the credit cycle.  This makes Arrow Global an extremely flexible partner with whom to work and ensures the best collection strategies are available to both the creditor and the customer.