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TBF Financial Buys $60MM in Commercial Debt from Major Online Lender

September 10, 2019, 07:25 AM

TBF Financial purchased nearly $60 million in non-performing loans from a major online small business lender in recent transactions, CEO Brett Boehm announced.

TBF bought the pools of post-charge-off loans as the highest bidder in transactions arranged through multiple brokers. In most cases, the company purchases directly from alternative lenders, equipment leasing companies and banks.

“We are seeing growing interest from online lenders who want to sell off commercial debt this year. It’s a smart strategy in any economic cycle because it provides lenders and lessors with immediate cash and a way to accelerate recoveries while protecting their customer relationships.  Concerns about an economic slowdown are another reason for growing interest in commercial debt sales, as companies prepare to handle a rise in delinquencies and defaults,” Boehm said.

In the most recent deal, the $60 million in transactions included non-performing loans that had not previously been handled by collection agencies as well as post-agency accounts.

TBF Financial is the leading purchaser of non-performing equipment leases, commercial bank loans and online small business loans in the U.S. The company buys commercial accounts up to 4 years old from the date of last payment. This includes equipment leases, loans and lines of credit that have personal guarantees, no personal guarantees, are secured, unsecured, pre-agency, post-agency, pre-litigation and reduced to judgment.

Just as fintechs launched a new industry, TBF created its own industry. When the company started in 1998, there were no businesses buying lease charge-offs on a consistent basis. The principals of TBF believed that they could buy charged-off equipment leases at an attractive price that would also provide TBF with a margin of profit. The equipment finance industry embraced the new services. Since then, TBF has broadened the commercial paper it buys to include commercial bank loans and lines of credit.

The company remains at the forefront of commercial debt buying for the finance industry.

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