Debt purchasing and debt servicing is a specialised industry with some industry-specific terminology, alternative performance measures and abbreviations. 

Below are some of the most used terms listed and defined. 

Alternative performance measures used in financial reports are defined in the applicable report and presentation. 

Cost to collect (CtC)

All external and internal operating costs related to the Group’s collection business


Cash EBITDA consists of EBIT added back depreciation and amortisation of tangible and intangible assets and added back amortisation and revaluation of purchased loan portfolios. Cash EBITDA is a measure of actual performance from the collection business (cash business) and other business areas


Earnings before interest, taxes, depreciation, and amortization


Financing of receivables through an arrangement between a financial institution and a client (company), where the client gets advances from the financial institution in return for receivables 

Forward flow agreement

Agreements where the Group agrees with the portfolio provider that it will, over some period in fixed intervals, transfer its non-performing loans of certain characteristics to the Group

Gross cash collection

Gross cash collection is the actual cash collected and assets recovered from purchased portfolios before costs related to collect the cash received


Estimated remaining collection (ERC) expresses the gross cash collection in nominal values expected to be collected in the future from the purchased loan portfolios owned at the reporting date and the Group’s share of gross cash collection on portfolios purchased and held in joint ventures. ERC includes ERR. The Total ERC is a common measure in the debt purchasing industry; however, it may be calculated differently by other companies and may not be comparable.


Estimated remaining recoveries (ERR) expresses the gross cash collection in nominal values expected to be recovered in the future from the purchased secured loan portfolios owned at the reporting date and the Group’s share of gross cash collection on secured portfolio purchased and held in joint ventures


Face value (book value); the unpaid principal balance (UPB) plus interest and fees


Cash flow

Net CF

Net cash flow; Cash flow less collection cost


Internal rate of return; The zero-NPV generating interest rate


Accounts receivables management


Non-performing loan: When a debtor has not made his/her scheduled payments for at least 90 days, the loan is defined as a non-performing loan (NPL)


Individual voluntary arrangement


Loan to value ratio


Credit management services


Earnings per share


Full-time equivalent: The number of employees in the Group, recalculated to full-time positions


A portfolio an the investment in secured (with collateral) and/or unsecured (without collateral) loan portfolios. 

Single ticket

A large individual claim, usually a secured loan.

Unsecured loans

Retail (consumer) claims without collateral; Smaller claims, typically consumer loans, credit card debts, etc. Forward flow agreements are usually unsecured. 

Secured loans

Claims secured with collateral; mortgage secured loans, loans secured with corporate real estate, etc. Secured portfolios will typically have a larger average face value per claim and fewer debtors per portfolio.

Third-party servicing

Collection of debt on behalf of others, such as banks and other credit providers.


Unpaid principal balance