what we do

Distress Debt Collections

The receivables distress portfolio that a legal entity has may generates cash flow disorder for financial institutions but also for non-financial companies. Generally, this problematic portfolio is usually an administrative cost for the entities, however is very common that companies sell these receivable distress portfolios. Investing in this kind of portfolio implies purchasing accounts receivables from originating creditors on the secondary market. When a debt buying company purchases an account from a creditor, it purchases the contracts and all rights, benefits and liabilities that were held by the creditor that are associated with the contract. These purchases can include accounts that are performing (i.e., making payments), as well as those that are nonperforming (in default). Armax Capital deliver services as receivable collection management, distress portfolio valuation and transfer. Armax Capital also helps to develop the financial engineering to became investors in this kind of portfolio.