Resurs Bank planning to sell delinquent receivables
Resurs Bank has entered into forward flow agreements with credit management companies Alektum Group, Axactor and Lowell, enabling them to recover some of the bank’s delinquent receivables in Sweden and Norway. The first transfer is expected to take place in January 2019. The transfers are expected to have a positive impact on Resurs Bank’s capital requirements, liquidity and earnings.
Some of Resurs Bank’s receivables that are more than 120 days past due will be sold to the credit management companies. The total quantity of outstanding debt under the agreements is SEK 550 million and the term of the agreements is 18 months. Selling the receivables will accelerate the conversion of receivables into cash flow and reduce Resurs Bank’s risk exposure.
Resurs Bank has not previously concluded forward flow agreements and the current portfolio of delinquent receivables will not be covered by the collaboration.
About Resurs: Resurs was founded in 1977 and is one of the fastest-growing niche banks in the Nordic region. During the 1980s, we pioneered the successful “interest free” retail finance concept, and today we are one of the leading Nordic retail finance banks, with about 5.8 million private customers across the Nordic region. From our core business in retail finance, we have expanded our product offering to also include savings accounts, insurance policies, consumer loans and credit cards. Resurs Bank is owned by Parent Company Resurs Holding and is part of the Resurs Holding Group. In 2015, Resurs Bank acquired the subsidiary yA Bank.