TBF Financial announced it closed a $36 million portfolio of charge-offs in late November through a brokered transaction involving a bank with loans, lines of credit, and equipment leases it wanted to sell quickly.
Brett Boehm, principal of TBF Financial, said his company’s last quarter has been strong. “We’re seeing an end-of-year push to clean house; banks and lessors have aging portfolios that have value, and they want to show strong profits as they close their books,” he said.
The broker that brought the deal to TBF is not new to the concept of selling charge-offs. This large online auction house acts as a full-service loan sale advisor for commercial and consumer debt and has referred to TBF in the past. “What is interesting in this case,” said Boehm “is the portfolio’s diversity and its value.”
TBF pioneered the service of buying charge-offs in the equipment leasing and finance industry when the company was founded in 1998. The company has also led the industry in refining the charge-off sales process to make it as easy as possible for clients to sell their uncollected receipts. The service has since become widely used today in the commercial finance industry.
“Once a working relationship is established, we can create a forward-flow arrangement in which no further due diligence is required after the first transaction,” said Boehm.
TBF is active in the equipment financing industry’s largest trade association, the Equipment Leasing and Finance Association, and recently TBF also joined the National Association of Equipment Leasing Brokers, an industry trade association that represents brokers and independents.
Since 1998, TBF Financial, LLC, has served the equipment leasing and finance industry by purchasing portfolios of charged-off small-ticket leases and loans in an efficient process that helps individual companies recover cash quickly and improve their account balances. The company, in fact, pioneered this service. The Deerfield, Illinois-based firm is an active member of the Equipment Leasing and Finance Association.