Credit notes
Loans others have written off.
A loan has gone bad and the holder has written it off. The holding company buys it at a discount and works it out with the borrower, on a plan both sides can keep to, rather than a shutdown.
- Debt recovery
- Bought at a discount
- Worked out in-house
- Not an offer
Bought at a discount, worked out with the borrower
A loan has gone bad and the holder has written it off.
Credit notes is the program the debt recovery line runs, one of the five lines, and it sits inside Build Capital Finance beside specialty finance and lending. What we source is the loan itself, bought at a discount from the lender or servicer that no longer wants to hold it. The discount is not a bet on the borrower recovering; it is the price of the work the buyer takes on.
What we run is the workout with the borrower: the chain of title is traced, the borrower is reached directly, and a plan is set that both sides can keep to, rather than a shutdown. The file stays inside the holding company, priced by our own underwriting and risk assessment, checked by our own audit, and run day to day rather than handed to an outside collector. The same controls that price a new loan in the lending line price a written-off one here; what differs is the moment in the loan’s life, not the discipline.
Structured, not formed, not an offer. No note has been bought and no workout desk is staffed.
What we source
A business loan that has stopped paying, bought at a discount from the lender or servicer that wrote it off.
What we run
The workout with the borrower: title traced, borrower reached, a plan both sides can keep to.
How it is checked
Priced by our own underwriting and risk assessment, checked by our own audit, and run day to day.
How a written-off loan is run
Source
Lenders and servicers holding a business loan they have written off and would rather sell than collect on themselves, secured by business property with a chain of title that can be traced.
Price
The note is priced by our own underwriting, audit, and risk assessment before capital moves: how the loan fails, what the collateral is worth today, and what the workout will cost in time and legal fees.
Work out
The borrower is reached directly and a plan is set that both sides can keep to: a modified schedule, a pause, or a handover of the property, with foreclosure the fallback rather than the plan.
Audit
Performance is checked in-house by the holding company, not reported up by the platform.
Four ways a workout ends
Modified payment schedule
Back to paying, on terms that fit.
The borrower keeps the property and resumes paying on terms sized to what the business can manage now.
Forbearance
A pause while the business gets through it.
Payments pause or reduce for a set period while the borrower works through a lost contract, a slow season, or a repair bill.
Deed in lieu of foreclosure
The property handed over, without a court.
The borrower signs the property over directly, which is faster and cheaper for both sides than a foreclosure.
Foreclosure sale
The fallback, never the plan.
Used when the borrower cannot be reached or the numbers support no negotiated route; it is the fallback, not the plan.
What has to be true before we buy
Business property, cleanly held
A chain of title with no gaps.
The loan is secured by business property with a chain of title traced through every prior assignment, because a gap makes the claim harder to enforce whatever the discount looks like.
The workout beats foreclosure
A negotiated route has to come out ahead.
A negotiated route has to recover more, net of time and legal cost, than foreclosing would, or the note is priced as a foreclosure case from the start.
The borrower can be reached
Someone on the other side to talk to.
A workout is a conversation, so a borrower who has dissolved the business or gone quiet for good removes the fastest routes before the file is opened.
Who this program serves
The counterparty is a lender or servicer holding a note it would rather not manage, not a borrower shopping for financing.
A bank, a credit union, a loan servicer, or a private lender sells the note because collecting on it takes time and attention it would rather not spend. The borrower is served second: a plan both sides can keep to keeps a business open where a shutdown would have closed it, which is why the workout, not the foreclosure, is the plan.
None of these are live relationships; this is what the program is built to do once one exists.
A bank or credit union
A defaulted business loan sitting past its normal collection process.
A loan servicer
A note file it no longer wants to hold.
A private lender
A single written-off note secured by business property.