TBF Financial buys pools of charge-offs, the smallest pools being around $500,000. We buy smaller pools from a specific source when we are buying on a continuing basis.

The buying process is easy, and we act very quickly. For a one-time purchase and for the first purchase in a continuing stream of purchases, the procedure is the same.

First, the seller prepares an Excel spreadsheet of basic information which can easily be assembled from the seller’s database. This information is normally the name and address of each lessee and personal guarantor, the remaining contract balance, and the date of last payment.

Second, once we receive the spreadsheet, we do our preliminary due diligence from which we develop the purchase price.

Third, once we agree on a purchase price, we complete our due diligence, prepare the purchase documents and close the purchase.

It’s that simple and easy!

The buying process for continuing purchases from one seller is even easier. All purchases after the first purchase don’t require any due diligence, and we just continue to use the purchase price percentage from the first purchase. The seller just prepares an Excel spreadsheet of the accounts to be sold and emails it to us. We then overnight the purchase proceeds or, at the seller’s option, wire transfer the funds. The only documentation is a bill of sale since the terms of the transaction are covered in the agreement for the first sale.