Portugal 
Spain 
Greece 
A 10-million bond from New Credit Management
06 November, Milano Finanza
The financial market and the property market have very different times and procedures. When it comes to credit management, these differences risk jeopardising the collection. New Credit Management (Ncm) was created last year to fill this informative gap. The company is headquartered in Brescia, and it specialises in the management of secured NPLs (mortgage loans). Ceo Mirko Tramontano explains: “We’re not a traditional servicer which limits itself to replicate the banks’ procedures. We created a platform that combines various skills, like legal-financial and commercial”.
The commercial office has to assess the exact property value availing itself of a network of real estate agencies, brokers and investment companies. Tramontano continues: “our office gets in touch directly with the debtor with a coaching-like approach. We want to understand why the debtor, may it be a mortgage holder or a company with a loan, cannot repay the debt and we help him find a solution”. After all, he says, “if we don’t solve the issues upstream, it will be difficult to collect the credit. Sometimes, the debtor himself calls us because he can’t communicate with the bank. Hence, he can’t close down his position even if wants to”. Concerning the communication between the legal and commercial offices, he says: “we aim at establishing a personal contact with the debtor, assuring the reduction of collection times and the increase of the collection percentage”.
About one year ago from its constitution, Ncm manages today secured NPLs for 500 million euro. A large part of them comes from big funds and other credit collection companies which subcontract Ncm for the credit collection in the role of servicer. In the upcoming months, Ncm aims at increasing the volumes of the managed assets on the secondary market and consequently its income and profits. The company forecasts one million euro in 2018. Tramontano continues “We currently have project pilots with several companies to proof the effective improvement of the collection curve. Today, we have a staff of 23 people, ten of which are employed as local commercial agents. But we’re investing a lot to grow further, hiring new people with a financial and real estate background”.
Besides the servicer activity on the secondary market, Ncm directly buys NPLs on the secondary market: “We’re looking for banks’ and servicers’ portfolios, we select the assets interesting for us, and we buy the single holdings. Our knowledge of the territory allows us to appreciate the underlying assets at their best”. He concludes that, to fund these operations, “last year we issued a bond amounting to 2.5 million euro. This year, we’re going to issue one for 10 million. The bond has been already entirely underwritten by our business partners”.
Source: Milano Finanza
Translator: Cristina Ambrosi