Pub. 11 2021-2022 Issue 3


Why Your Bank Should Consider Selling Their Charged-Off Debt Files

Like many banks nationwide, you probably have a considerable amount of charged-off loans from the last four years. Also, like many banks, you might not know your charged-off loans have value to a debt-buying company.

Charged-off loans are the dirty words in modern banking. You lent funds to a bank customer who defaulted on the loan, an event most likely due to a job loss, divorce, injury, or in modern times, COVID. When this happens on a large scale, you experience considerable loss. We share a great secret in the charged-off world that you may not know about: selling your charged-off loan portfolios.

Cherrywood Enterprises is a debt buying entity offering this service for over nine years. Their CEO Craig Geisler has spent over 14 years in the debt buying arena. Cherrywood Enterprises has worked with banks, credit unions, auto lenders, and commercial lenders nationwide, helping these entities understand the value of their charged-off portfolios and infusing capital back to these financial sectors.

What are the benefits of selling your charged-off loan portfolios?

  • Create much-needed liquidity through a cash infusion from the sale of the distressed debt.
  • Bolster the bottom line now versus waiting months or years for collection efforts to take effect.
  • Reduce ongoing costs associated with internal collections as well as management of third-party agencies.
  • Lessen or eliminate reliance on third-party collection agencies.
  • Eliminate months or years of waiting without a guarantee of a return – a significant benefit when factoring in the time value of money.
  • Protect your brand – this is typically the effect of a debt buyer owning the purchased accounts outright, having a longer time horizon, and, therefore, a solid incentive to work professionally with debtors and obtain repeat business from you.

The process of selling your charged-off debt portfolios is simple: we first send you a mutual NDA to protect both parties’ proprietary information. We also send you a blank Excel spreadsheet with the headers of information needed to review your portfolio, and we request sample documents from one account. It takes us approximately three to five business days to review these documents, and we will come back with an offer for your portfolio.

Once we agree on the price, we send you a Purchase and Sale Agreement for both parties to sign, and within 24 hours of receiving that signed agreement, funds are wired directly into your account. When you have the funds, we will need the backup documents for all accounts sold, and we are on our way.

It’s that simple!

Further action is unnecessary on accounts your bank has sold. Plus, this is a program you can do monthly, bi-monthly, quarterly, or annually. It is just a matter of changing dates and numbers.

To get started, feel free to call us at (561) 508-7650 or email our CEO, Craig Geisler, directly at

See how easy and beneficial selling your charged-off loan portfolios can be.