- CREDITI FISCALI
The distressed retail loans market is characterised by the presence of players who approach the business in different ways and focus their attention on portfolios that are often non homogeneous, especially as for the type of receivable that is bought, the type of subject, and the methods of collection.
We may recognise 4 categories of non-performing loans that are purchased, deriving from:
- property-backed mortgages;
- other receivables backed by third-party surety bonds;
- asset/salary-backed consumer credit/retailer loans due from individuals;
- unsecured consumer credit.
We may identify the following categories of debtors:
- individuals with or without steady income;
- limited companies or partnerships/sole proprietorships.
We may distinguish two broad areas for collection, judicial and non-judicial.
In addition, market players adopt different approaches also in taking on risk:
- some seek to acquire portfolios and manage them until the payment's collection;
- some focus only on management in exchange for fees.
The market for distressed retail loans originating largely from the unsecured consumer credit sector was characterised in 2013 by several and often significant disposals of loan portfolios by Italian financial companies belonging to major foreign banking groups, as well as by the return of international investment funds as buyers. The inflow of abundant liquidity on the financial markets due to the interest of foreign investors in the Italian market caused demand to increase, leading to higher competition and pricing pressure.
The economic situation has swelled the pool of non-performing loans, and therefore of receivables potentially up for sale, exceeding 156 billion Euro in the banking industry alone and forecast to grow further over the next two years.