How do you sell a pre-settlement funding portfolio?

A pre-settlement funding portfolio sells on its record. The seller assembles an item-level tape with the outcome and collection history of every closed advance, gets an independent read of duration and collection, chooses a structure (a whole sale, a partial sale, performance-based upside or forward flow), and places the book with a buyer who prices from that record.

The tape. Each advance with its funded date, amount, state, case type and status, and for every closed advance the collected amount and the date. A tape in any format is enough to start. Gaps in the tape become discounts in the price.

The read. Closed advances show how long matters of each type took and what they collected. That history also implies the decline rules the book was written under. A buyer who reads both can say what the open advances support.

The structures. Full consideration at closing. Performance-based upside, where part of the price depends on what the book collects. Forward flow, where the buyer takes future originations on agreed terms. A partial sale of one segment or vintage.

Servicing. Many sellers keep servicing under an agreement, so plaintiffs and attorneys see no change. Where notice is required by contract or by law, it is agreed in writing before closing.

Criterica Capital evaluates pre-settlement advance books from the record and prepares them for independent capital providers. A written read of the book comes back first, before any price discussion.

Ready to take the next step?