Debt Buying

We are specialist debt buyers and will consider the purchase of any debt that we are approached to advise about, please Contact Us to provide us with more information.

Debt purchasing offers many benefits, with the overriding benefits to a creditor being:

  • removal of bad debts from a balance sheet
  • improved cash flow
  • improved accuracy in cash flow projections
  • reduction of time and expense in the collection process
  • elimination of the risk of paying significant lawyers’ fees without assurance of success.

Writing off debt (whether by selling the debt or simply writing it off the balance sheet) also allows companies to claim VAT relief on debts. However, whether for tax or auditing purposes, businesses are sometimes required to provide evidence that a debt is irrecoverable for it to be written off the balance sheet. We offer leading-edge asset tracing services that can assist in proving debts are irrecoverable.

Bluestone offers two bad debt sale options:

Bluestone Alpha

Bluestone Alpha is our wholesale debt purchasing function. We purchase bulk debt and portfolio debt, both secured and unsecured, from banks and other credit service providers. Those debts are profiled against our in-house models. We have in-house expertise in managing a performing debt portfolio and recovering non-performing debts. We perform data modelling in-house on primary, secondary and tertiary data segments to inform a strategy to maximise our portfolio return.

Bluestone Premium

Bluestone Premium is our premium debt recovery solution, most often used by businesses and individuals with high-value single debts. We offer tax-efficient realisation of income on bad debts, and deal with debtors in a fair manner to secure payment through negotiating and litigation.

How it works

Before we agree to purchase debts we:

  • undertake a legal assessment of the character of the debt and the underlying contract
  • investigate the individual or company that owes the debt to determine the viability of litigation
  • will be able to indicate an approximate figure that we would pay for your debt.

Once our enquiries are complete and we offer to purchase the debt, contracts are prepared by our in-house legal team for the sale. We advance up to 50% of the agreed value on signing the contract, with the balance due later in instalments. Your business can then write the debt down and claim bad debt VAT relief.

Qualifying debts

We approach each Bluestone Premium client debt on an individual, case-by-case basis; there are no debts we do not consider purchasing. The types of debt include but are not limited to:

  • unpaid goods and services
  • rent arrears
  • unsecured loan debts
  • default on loans including bridging loans
  • trading debts
  • small claims court debts
  • import / export debts – we specialise in International Debt Recovery
  • insolvency debts

Although we purchase debts of less than £5,000 most debts we deal with through Bluestone Premium are above £5,000. Obviously, we have to be satisfied about the legal merits of the claim, and that the debt is not so old that legal proceedings are time barred.

Our clients include:

Insolvency Practitioners

As experienced practitioners in asset recovery, Insolvency Practitioners approach us to purchase debts owed to insolvent companies or individuals. An Insolvency Practitioner may not have available funds to pursue debts and/or must generally allocate very limited available resources for the best benefit of creditors, who have already lost out due to the insolvency. The IP benefits as it is able to have on hand a professional and reputable company to value the debts of the business they are administering.

If you are Insolvency Practitioner, please Contact Us now for an immediate valuation.

Business clients

Cash flow is the lifeblood of any business and is seriously adversely affected by ineffective credit control. Selling debts results in :-

  • improved cash flow
  • VAT relief
  • guaranteed income for bad debts which might otherwise be irrecoverable
  • saving the administrative expense of recovery
  • saving the expense of lawyers’ fees. Legal costs are also often irrecoverable from a debtor for debts brought on the Small Claims track (debts less than £5,000)
  • elimination of the risk of being ordered to pay the debtor’s legal fees should something go wrong during the litigation.

Please Contact Us now for an immediate assessment of your debts.

Individual clients

If you have debts owed to you, we offer:

  • an assessment of your options, legal, financial and practical without you incurring significant legal fees for such service
  • a guaranteed and immediate return on the debt, as opposed to paying money to lawyers with no guaranteed return
  • payment for debts can also be structured in a tax-efficient way
  • maintenance of ongoing business or personal relationships with debtors who have failed to pay you. As an objective third party we are able to resolve debts independent of you.