TBF has announced the development of a proprietary algorithm – its Data Driven, True Market Pricing – to calculate the value of commercial debt. The company is using the algorithm to offer lenders and lessors competitive prices for non-performing equipment loans and leases, commercial bank loans, online small business loans, lines of credit, merchant cash advances (MCAs) and commercial credit card accounts in the United States, said CEO Brett Boehm.
“The pricing algorithm is based on debt recovery data from more than 27 years in the business, through every economic cycle. This includes detailed data on all types and grades of commercial paper,” Boehm explained on the company’s new website.
“Our CFO Adam Boehm developed the algorithm to ensure the prices we quote are aggressive while still reflecting the fair market value of the assets. You want to offer the highest, realistic price for the debt that benefits the seller and also your business,” he noted.
“If you pay too much for commercial debt, then you lost on the deal at the time of closing. The crux of this business is buying right. TBF has that in spades based on its history of recovery data.”
Debt acquisition is a long established practice in commercial finance. In 1998, TBF was the first company to buy charged-off equipment leases, and since then has expanded to acquire a variety of commercial debt from equipment finance companies, banks, online commercial lenders and merchant cash advance businesses.
The company specializes in pool sizes starting at $5 million to more than $100 million, typically buying non-performing commercial accounts after they have been worked internally and reached the charge-off stage. They may have personal guarantees or no personal guarantees, be secured or unsecured, pre-agency or post-agency, or pre-litigation and/or reduced to judgment.
The Technology and People Behind TBF
TBF’s new website provides insights into its pricing algorithm and debt buying process. The site also features photos and background highlighting the people behind company – a growing team dedicated to helping lenders and lessors recover value from their distressed accounts, Boehm said.
