Debt Buying
Bad debt is an inevitable reality of business, but the financial risk of recovering it shouldn’t be. At Tempest, we know that pursuing difficult debtors drains your time, capital, and resources. That’s why our debt purchasing service absorbs 100% of the recovery risk. We provide a definitive market solution with absolutely no upfront costs, allowing you to transfer the burden to us and initiate your recovery immediately.
There are many options to choose from when deciding how you will recover this debt. But here are some factors that you should also keep in mind:
– How much will it cost to recover?
– What are the chances of recovery?
– Is the debtor able to pay?
The last thing you want to do is to spend more time & money to try recover the debt, with no result. Get in touch to discuss any of the below options!
Risk-Free Debt Recovery: Our “Arrange a Split” Model
When it comes to recovering a debt, traditional avenues often carry a significant catch: successful recovery is never guaranteed, but your legal fees absolutely are.
At Tempest, we believe you shouldn’t have to throw good money after bad. Our Arrange a Split model is designed to eliminate 100% of your financial risk during the recovery process.
Why Choose Tempest?
Zero Upfront Costs
We cover all legal expenses. This includes document filing, court fees, and any other out-of-pocket costs required to effectively pursue your case through the legal system.
Expert Legal Representation at No Charge
Our in-house legal team specializes specifically in debt recovery and insolvency. They will handle your entire file and execute the strategy required to give you the highest possible chance of recovery—without ever sending you a bill for their time.
How It Works
We have streamlined our recovery process to be as straightforward and hands-off for you as possible:
1. Submit Your Debt: Contact our team with the details of the outstanding debt you would like us to pursue.
2. Receive Your Offer: We will carefully evaluate the debt and present you with a proposed percentage split on all successful recoveries.
3. Sign the Agreement: If you are happy with the terms, we will sign a Deed of Assignment. This legally assigns the debt to Tempest, granting us the authority to pursue it.
4. Initial Outreach: We will immediately contact the debtor to enforce the debt and seek a resolution.
5. Swift Legal Action: If the debtor fails to cooperate in good faith, our legal team will quickly initiate formal court proceedings to secure a legal judgment.
6. Enforcement: Once a judgment is received, we actively enforce it to recover the owed funds.
7. Cost Reimbursement: From the successfully recovered funds, our initial court filing and legal fees are repaid first.
8. Profit Split: All remaining recovered funds are promptly divided between you and Tempest according to our agreed-upon percentage.
We buy these type of debts outright or arrange a split:
✔ Bad debt
✔ Unsecured debt
✔ Old or historic debt
✔ Disputed debt
✔ Rent or lease arrears
✔ Unpaid goods or services
✔ Insolvency debt
✔ Debts which collection agencies are unable to resolve
If you are unsure whether or not Tempest will buy your debt, contact us today before you write it off!
Our Litigation Funding Process
- Initial Submission: Initiate the process by contacting us with the details of the case for which you are seeking litigation funding.
- Preliminary Assessment: We will acknowledge receipt of your application and begin our initial evaluation. During this phase, we may request additional information to better understand the merits of your claim.
- Decision to Proceed: Following the preliminary assessment, we will advise you on whether we will decline the funding request or advance your application to the next stage.
- Letter of Intent & Due Diligence: If your case advances, we will issue a Letter of Intent. This document outlines the proposed funding options, the terms for dividing any successful recoveries, and a specified due diligence period. This period allows us to conduct a comprehensive review of your claim and all supporting documentation.
- Formal Funding Agreement: Upon the successful completion of our due diligence review, we will enter into a Formal Funding Agreement.
- Ongoing Financial Support: We will fund all agreed-upon litigation costs throughout the duration of the legal proceedings.
- Case Management Liaison: We maintain close communication with your legal team and other relevant parties to ensure the claim is being managed effectively and efficiently.
- Disbursement of Recoveries: Upon a successful resolution, the recovered funds are distributed in strict accordance with our Formal Funding Agreement.
To ensure a strong partnership and a high likelihood of success, we evaluate all prospective funding applications against the following key criteria:
Claim Value: The estimated value of the dispute should fall between $200,000 and $2,000,000.
Defendant’s Financial Viability: There must be a reasonable prospect that the defendant possesses the assets or financial capacity required to satisfy a legal judgment or settlement sum.
Evidentiary Support: The claim must be substantiated by strong, verifiable documentation, correspondence, and material evidence.
Legal Merits: The proposed litigation must be firmly grounded in sound, established legal principles.
Client Approach: The plaintiff must demonstrate a pragmatic, commercially realistic attitude toward the litigation process and potential settlement outcomes.
Frequently Asked Questions
Are there hidden costs?
There are absolutely no hidden costs. We operate with complete transparency. In the event of a successful recovery, only the following two deductions will be made from the recovered funds:
The Agreed Profit Split: Tempest’s previously agreed-upon percentage share of the recoveries.
Reimbursement of Filing Fees: The initial court filing fees covered by Tempest on your behalf, which are reimbursed prior to the final split.
(Note: Because we fund the litigation, you are never out-of-pocket. These deductions only apply if the claim is successful).
Are you a debt collection agency?
Unlike traditional debt collection agencies, we operate as a specialized debt purchasing firm. This fundamental distinction empowers us to execute a significantly more efficient and effective recovery process. Because we take legal assignment of the debt, we are not limited to endless phone calls or letters. If a debtor fails to engage with us constructively, we bypass standard collection delays and promptly initiate decisive legal action.
What happens if no recoveries are made?
If enforcement of a judgement still prevent us from making any recoveries then we will promptly start our process to bankrupt or liquidate that debtor.