NPL · Debt Collection

Non-Performing
Loans

Valuing and disposing
of distressed receivables.

Finrare supports financial institutions, debt funds and specialist investors throughout the full lifecycle of non-performing loans: from portfolio construction through to disposal or collection.

Our approach combines deep technical expertise — scoring, cash flow modelling, legal analysis — with a network of institutional buyers active in French and European markets. We act on both the seller and buyer side.

Beyond the transaction itself, we advise our clients on portfolio strategy, provision optimisation and the implementation of effective collection processes.

01
NPL Portfolio Disposal

Structuring, data room, buyer selection, negotiation and closing. We support sellers and buyers at every stage of the disposal process.

02
Valuation & Pricing

Cash flow analysis, financial modelling and valuation opinions on loan portfolios (retail, corporate, real estate-backed).

03
Collection Strategy

Design and implementation of debt collection strategies tailored to debtor profiles and return objectives.

04
Buyer Due Diligence

Independent audit of acquisition portfolios: data quality analysis, collateral review, historical cash flows and operational risk assessment.

Market overview

The French NPL market
in full transformation.

€81bn
French bank NPL stock (mid-2024)
€6.6bn
Portfolio sale volume in France (2024)
+78%
Year-on-year increase in disposal volumes (vs. €3.7bn in 2023)
67%
Of market participants expect the NPL ratio to rise within 12 months
Market dynamics

After a prolonged period of relative restraint, French banks are accelerating portfolio disposals. Transaction volumes nearly doubled year-on-year, rising from €3.7bn in 2023 to €6.6bn in 2024. This momentum reflects a combination of structural factors — rising defaults in a high-rate environment — and a growing recognition of the balance-sheet benefits of NPL sales.

In terms of composition, 2024 transactions were dominated by consumer receivables (56%), followed by SME portfolios (30%) and residential mortgages (13%). France now accounts for 32% of the European NPL stock, up from 19% in 2019 — a significant shift in the European risk landscape.

Regulatory developments

The transposition of the EU directive on NPL servicers and purchasers into French law introduces a new licensing framework supervised by the ACPR (French Prudential Supervision Authority). This reform professionalises the market and raises operational requirements for buyers of distressed debt.

At the same time, over 90% of market participants expect disposal volumes to increase over the next 12 months. The main friction identified remains the bid-ask spread between buyers' pricing and sellers' expectations — a valuation challenge that sits at the core of our value proposition.

Our other areas of expertise

Explore our full range of advisory services.