Portfolio Recovery Valuation Tool

This decision-support tool helps lenders decide whether to bid on, sell, or hold a debt portfolio using a first-pass planning range from portfolio-level inputs. It does not read account files, a live transaction database, or current buyer bids.

Inputs

• Face value, account count, and asset class.
• Months since charge-off, a user-entered documentation-completeness proxy, and a user-entered geography-mix adjustment.

Calculation method

The fixed illustrative base rates are consumer unsecured 5.2%, auto deficiency 7.5%, fintech installment 4.8%, commercial judgment 9.5%, and medical receivables 2.4%. The model multiplies face value by the selected rate, then applies an age factor: 1.00 through month 12, 0.82 for months 13–24, 0.60 for months 25–36, and 0.40 after month 36.

Documentation factor = 0.70 + 0.35 × the entered documentation percentage. Geography-mix factor = 1 − 0.25 × the entered geography percentage. The range is the resulting model value ±15%. Account count is used to display average balance only; it does not affect valuation.

The displayed gross-recovery proxy is face value × effective rate × 2.8. The 2.8 multiplier is fixed and illustrative, not a buyer forecast. The displayed 12–24-month horizon is informational; the calculation does not discount cash flows over time.

Assumptions and limits

These factors are not market-calibrated or independently validated. The documentation and geography inputs are user-entered proxies, not legal conclusions. The calculator does not model account-level cash flows, state-specific law, servicing or legal expenses, funding costs, or buyer diligence. Treat the result as a scenario aid, not an appraisal, bid, pricing opinion, legal advice, or guarantee.

Related Portfolio Decisions

For a broader sale-versus-hold framework, review these briefings:

• Debt Catalyst Valuation Briefing: Product logic and data workflows for portfolio analysis.
• Portfolio Recovery Valuation: Factors to investigate when reviewing non-performing loan pricing.
• BankWatch Pro & Credit Union Risk: Institution-level charge-off and capital topics.
• Five Data Signals That Affect Portfolio Value: Data-quality issues to investigate.

Discuss a Specific Portfolio

If you’re assessing a portfolio, start a confidential conversation about the decision and data you’re working through. You can also compare collection operating assumptions with the Agency Efficiency Calculator.