Rainmaker Recovery

BACKGROUND

Rainmaker Recovery (RRI) is a wholly owned subsidiary of Rainmaker Consultants Inc., founded in 1999. RRI specializes in purchasing bad debt for the purposes of collection. RRI's president is Victoria L. Targosz. She has been in the collection business for over 17 years, and has an extensive background in collecting bad debts from virtually every financial industry.

WHAT IS "BAD DEBT" AND WHY PURCHASE IT?

Most creditors will carry its receivables on its books while the debtor is making payments. If a debtor ceases to make payments to its creditor, the creditor will carry the delinquent balance on its books for a certain amount of time. Usually the time amount is decided as a business policy of that particular organization. After a certain amount of time with many accounts going unpaid, the creditor realizes a large inflation of balances on its books and records. It then becomes cost effective for the creditor to sell the non-income producing accounts which has been charged off. These "bad debt" accounts are gathered into the form of a portfolio which can then be bought and sold.

HOW IS BAD DEBT PURCHASED?

Bad Debt is sold and assigned to the purchaser for an agreed amount. This amount usually ends up costing so many cents on the dollar for the purchaser. The purchaser of the debt now becomes the owner of the debt. Once the assignment is complete, the new owner continues the collection process. Volume is essential in buying bad debt. The more debt that is purchased, the better the return on the investment will be.

Purchasing bad debt should be done by companies or individuals who have expertise in this arena. RAINMAKER RECOVERY INC. ARE EXPERTS IN BUYING AND COLLECTING BAD DEBT.

WHAT IS THE KEY TO MAKING A PROFIT ON BAD DEBT?

• Evaluate the pricing.
• Evaluate the age.
• Evaluate type of debt and the documentation available.
• Know the creditor/seller from whom you are purchasing.
• Having the systems and resources available to make a return of the investment.