Purchase of debts (factoring)

In 2008, I was talking about the development of the factoring Market in Bulgaria. The credit crisis was in its peak and the few factoring companies in Bulgaria were progressing in their business. These factoring companies were sole owned by few banks. However there were also other private limited companies which deal mostly with debt portfolio purchases and debt collection. The latter have increased their market share due to the fact that they were sub-contracted by the banks to collect bad debts and foreclosures expenses.

After the creation of the property public auction website, now the debt collection business is going even further by setting up a debt portfolio auction website.Unfortunately the website is only in Bulgarian, probably the owner assuming that only Bulgarian companies will be interested in the information.

If you represent a foreign company, which plans to expand to the Bulgarian market, you need to consult a solicitor/lawyer with the specifics of the factoring market. The process of debt purchase and sale has its local Bulgarian statutory requirements, which doesn't match the international factoring practice. Call our solicitors on 00359 52 605 997 or email to Mr. Milen Hristov at milen@mhlegal.eu if you have a specific enquiry regarding the factoring business in Bulgaria.

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