PURCHASE OF DEBTS

The company Profidebt Slovakia, s.r.o. was established in March 2005 as a subsidiary of the Profireal, a.s. company. Profidebt operates on the markets of retail debts. It specializes in purchase, administration and collection of debts as well as recovers debts from mandate administration.

The idea to establish Profidebt dates back to the end of 2004. The management of the company PROFIREAL, a.s. analyzed retail debt market and decided to set up a subsidiary company that would be specialized in purchase of retail mature debts, especially from personal entities, banks, financial institutions as well as trading companies.

After several months, in March 2005, Profidebt was recorded in the Commercial Register. First employees were hired and in the same time, first debts were purchased. Procedures for effective administration and recovery of a large amount of debts were gradually created and implemented into practice. A unique information system was under development, that would lead to automation of all processes of debt administration.

Foundations of network of collecting employees were laid in the middle of 2005. They are the main asset of successful debt recovery from personal entities. At the end of the year, PROFIDEBT was administrating debts of four prominent assignees whereas the collection of assigned debts was growing, which proved to be a correctly set system of debt recovery.

The progressive development of Profidebt continued in 2006. The network of collecting employees was reorganized, which resulted into better quality of the recovery network and increased effectiveness of the recovery process. By the end of the year, the portfolio of purchased debts increased and Profidebt was thus administrating more than 23 thousands debts in the total nominal value exceeding one milliard crowns.

Profidebt within the structure of Profireal Group.