By: Craig M. Geisler
Over the past 10 years, the debt marketplace has certainly changed quite a bit. Back in 2007-2009, credit card resales dominated the market place, with splashes here and there of payday loans and auto deficiencies.
Fast forward to 2019, and what an industry change! The auto market has replaced the credit card market, due to its attractive pricing and availability of back up docs. The commercial market has gained steam, along with the medical market. There is a lot more diversity in our marketplace, with buyers looking for “a deal”.
According to Craig Geisler, president of Cherrywood Enterprises “the debt market, shares a lot with the housing market, across the US. You will either have buyers’ markets, or sellers’ market. Trends continue to change, based upon supply and demand. What was once a hot ticket item, goes to the bottom of the barrel, and it leaves buyers searching for the next “latest trend”.
So, what is the next trend? Mr. Geisler explains “Well, I believe I’ve already touched on that. It’s the commercial market, and it makes perfect sense! In recent history, the creation of the CFPB, and it’s gaining power against our industry, has led to companies exiting the industry, changing their compliance standards, or risking heavy fines and suspensions with questionable collection standards.” Craig further states “Many buyers and agencies are looking for cover, or avoiding those markets that are being heavily punished, much like the student loan market. The answer? Commercial files.”
According to Geisler “Commercial files operate under UCC codes and have different compliance laws. Its all about the businesses and having personal guarantors. If the business is defunct, collection practices still fall under UCC compliance codes, even if you are going after a person and not a business. Couple that with excellent back up docs, and favorable pricing, and you have yourself a home run!”.
Bottomline, the issue with commercial paper is, there just isn’t enough of it! There are many buyers entering in this “new market”, but it is relatively unknown for many other buyers.
Cherrywood Enterprises, LLC has a forward flow of commercial files, direct from the bank. The docs are all hard copy originals, with wet signatures, and we are selling them by state.
Feel free to call Craig Geisler to discuss your desired portfolio availability at 561-508-7650 or email to firstname.lastname@example.org. For more information visit www.cherrywoodenterprises.com for NDA, sign up forms, referral partners, and endorsements of Cherrywood Enterprises business practices.