Jay Stone, CEO
Given recent turbulent market conditions, it’s no surprise that reliable, accurate valuations of assets have moved to the forefront as one of the biggest challenges for businesses and lenders. “Stepping out from a stable condition after almost a decade, the accounts receivable space is heading for much more volatility. This more volatile market environment, with new tariffs, rising interest rates, and stock market instability means that companies will have trouble closing deals,” begins Jay Stone, CEO, Hilco Receivables (an operating company within Hilco Global).
A veteran in the accounts receivable sector, backed by over two decades of experience, Jay Stone is uniquely positioned to speak about how both commercial and asset-based lenders are consequently experiencing a surge in charge off delinquencies. In such a scenario when businesses go haywire and accumulate substantial financial debt, Hilco Receivables successfully brings customized valuation, monetization, and strategic advisory services to the table, including converting underperforming or non-performing loan/debt portfolio recovery services into cash, to help their clients maximize asset recovery value.
Aiding businesses across diverse industries in the monetization of their receivables, Hilco Receivables meets the unique requirements of clients by delivering the capital and experience for an outright purchase of receivables, purchase with an upside share or a fee-based proposal. The company leverages several decades of experience in accounts receivables management to maximize the value of any non-performing asset that clients may have in their portfolio.
Having dealt with large trade receivables, bankruptcies to retail portfolios and consumer direct charge-off at some of the largest credit card entities, Stone knows that it takes more than just advisory activities or appraisals to drive improvement in business. “Over the last 25 years, it’s been rare when we couldn’t pull a company out of a distressed A/R situation. We pride ourselves in being able to purchase A/R assets which are extraordinarily difficult to monetize,” says Stone.
When it comes to bridging the gap between businesses and credit lenders, Hilco Global has a comprehensive approach toward providing solutions that help all parties maximize the value of any given asset. To begin with, the Hilco Global team is considered a worldwide expert at valuing virtually any tangible or intangible asset on the planet including but not limited to enterprise valuations, compliance valuations, and asset-specific expertise on retail inventory, real estate, intellectual property, machinery, and equipment, etc.
Gary Epstein, CMO & EVP
With such a robust asset valuation expertise in-house, the Hilco Receivables team can deliver a complete customized asset monetization solution for the A/R as well as any other asset on the left-hand side of the balance sheet.
“Hilco Receivables is a unique operating company within Hilco Global which looks at a business’ A/R as potentially offering a company real and substantial value, particularly in a time of distress or restructuring,” commented Gary Epstein, the Executive Vice President and CMO at Hilco Global. Epstein continued, “Hilco Accounts Receivable is an industry leader at converting underperforming or non-performing commercial A/R and loan portfolios into cash by leveraging our own capital and quickly acquiring the A/R if appropriate.”
We pride ourselves for being able to purchase assets which are extraordinarily difficult to monetize
Epstein recalled an instance where Hilco Receivables had collaborated with Del Monte, a large international food company that was in the process of acquiring an Arkansas based frozen vegetable brand owned by Sager Creek. The deal required some additional capital in order to close and Hilco Receivables came up with a solution to purchase the A/R outright enabling Del Monte to acquire the remainder of the Sager Creek business.
“We are creative and very agile. By acting quickly, we provided more than the needed capital to facilitate the transaction on an expedited basis,” Stone explained. Importantly, Stone added, “Del Monte trusted Hilco Receivables to treat customers with the same concern in collecting accounts as they would treat them if handling it on their own. In moving quickly and providing quality customer service, Hilco Receivables helped Del Monte consummate this important transaction.”
In a similar instance, Hilco Receivables had acted as a stalking horse for unique businesses in many categories, such as WYNIT, a large consumer electronics supplier, which had confronted a chapter-11 bankruptcy. Hilco Receivables monetized WYNIT’s assets worth $50 million, thereby effectively mitigating their losses.
According to Stone, Hilco Receivable holds a most known in the consumer debt sector, which is inarguably the most significant factor currently in the accounts receivable space. “We will continue to work aggressively in the consumer and commercial debt monetization space, even when the US economy maneuvers through choppy waters,” Stone concluded.