“Moldy” Receivables
and Historical Write-offs

Regardless of their business, most companies have receivables that are highly-aged. They sit in piles in a manager’s office or in storage awaiting the next action in a series of attempts to collect. Despite the company’s best efforts, many of these accounts are never paid. Ultimately, because they no longer justify the resource investment in continuing collections, they are either forgotten or written off and collection efforts are ceased. Oak Point provides an outlet for companies to turn these unproductive receivables into cash. We use our experience to work with the owners of aged receivable portfolios to structure a transaction that maximizes the benefits to the seller while minimizing resources required from the seller.

To the extent that old receivables have become bankruptcy claims, Oak Point is willing to buy them as well as part of a broader purchase of old accounts. In the past, we have worked successfully with CFO’s, credit and collections managers, private equity firms (prior to selling a distressed portfolio company, as well as following the purchase of a new company or add-on acquisition), secured lenders, turnaround/restructuring officers, and trustees.