New receivables every month
What’s different about this receivables portfolio is that EOS Spain did not purchase it en bloc. Every month, Barclaycard determines how many credit card owners are in payment default of more than 180 days. The receivables are then transferred to EOS Spain. These rolling monthly sales have an initial term of one year. ‘It was important to us that the buyer had a good reputation and that their values matched ours with respect to our professional and courteous way of dealing with clients,’ says Damián Herrera Ramos, Debt Collection Manager at Barclaycard. ‘These factors, together with the competitive price, were decisive in our selection of EOS Spain.’
EOS Spain worked closely with Risk Management within the EOS Group in Germany on putting together a suitable bid for the three portfolios purchased in 2015. ‘One of our analysts spent several months at head office in Hamburg in order to learn from the internationally active experts working there,’ reports Mr Artés de Arcos (see Experts know what counts). In addition, the management of EOS Spain exchanged information with EOS Credirec, the French market leader in debt purchase. EOS Spain has already made its first gains in the realisation of receivables portfolios. The Head of Sales says confidently: ‘We will achieve the targets we have set.’ It is still too early for a detailed evaluation, except for the first portfolio acquired in 2013, which, he says, ‘has proven to be a profitable investment.’
EOS Spain will actively seek new portfolios to purchase. ‘Our goal is to make the most of the today’s active market conditions with regular acquisitions,’ explains Mr Artés de Arcos. The focus is on unsecured debt from consumers and companies. After all, the 2015 hat trick should not be the last.