How we do it
strategy | innovation | expertiseAcquisition of Debt
R&Q Liquidity Management acquires debt based on the seller’s needs. Most commonly, this involves a non-recourse assignment of the debt. Generally, there are 4 stages to a sale of debt: Review, Agree, Assign and Notify.
Firstly, a brief review or due diligence of the data held by the vendor is carried out to enable the debt to be priced.
Following the review, if R&Q Liquidity Management makes an offer to buy the debt and this is accepted, the debt is assigned.
The rights to the debt are transferred from the contract of (re)insurance for the agreed consideration via a formal assignment agreement.
The vendor notifies the debtor that the debt has been assigned to R&Q Liquidity Management.
R&Q Liquidity Management also offers innovative, alternative methods of sale. These give a vendor greater choice and control over the process. They can also provide an additional return to the vendor, if the acquired debt subsequently outperforms expectations. These methods of sale include:
- Recourse financing
- ‘Cap and collar’ acquisitions
- Hybrids of the above and non-recourse
Services
R&Q Liquidity Management works closely with clients to structure a service to suit their needs.
Clients also have access to other Divisions of the R&Q Group. These Divisions provide a diversified range of services. These can be readily aligned to the requirements of the client, and include:
- Collections
- Commutations
- Crystallisations
- Debt Agreement
The flexibility of R&Q Liquidity Management enables its clients to select a, ‘best fit’ range of products and services. For example, assistance in the agreement of disputed or unagreed debt and coupling this service with a subsequent sale of the agreed debt to R&Q Liquidity Management. In this case, the client is able to expedite the realisation of a previously uncertain asset.