EPA USA Inc

The core business of the lender is to lend money. It is his competitive advantage and will allow the growth of the business and to increase the size of the company. Once the underwritten loans move to more delinquent buckets (DPD 180, 360...) it is best practice to off-load delinquent portfolios.

 

At first, the lender may not be affected by the time constraint of portfolio performance. Later, the lender's performance may struggle with their brand on these accounts. Borrowers become more challenging to communicate with and recover payment. Finally, accurate pricing will improve the P&L of the company and increase the lender's valuation.