Spot Sale vs Forward Flow
When creditors should run a one-time spot sale versus a forward-flow agreement on charged-off receivables. DebtHub desk notes with the full flow guide.
DebtHub · Seller / creditor pathway
A spot sale clears a defined pool once. A forward flow commits future charge-offs on eligibility rules and a pricing grid. Most first-time sellers should spot-sale once so both sides learn the file, then talk flow.
Spot sale
Best when the pool is a one-off cleanup, vintage is mixed, or media quality is still being inventoried. You get a single PSA and a single funding. Buyers can underwrite the whole tape.
Forward flow
Best when charge-offs are recurring and the data dictionary is stable. You agree eligibility, max/min monthly face, and a grid (often by vintage or media completeness). Operational load is higher: monthly tapes, rejects, true-ups. Read the long-form forward flow guide before you commit a number.
Hybrid
Many creditors sell the backlog as a spot and put new charge-offs on a 6–12 month flow with a termination clause if media slips.
| Structure | Use when | Watch for |
|---|---|---|
| Spot | Backlog, mixed vintage, first sale with this desk | One funding; no future volume committed |
| Forward flow | Predictable monthly charge-offs, stable dictionary | Rejects, true-ups, grid disputes |
| Hybrid | Cleanup plus an ongoing book | Two contracts, two calendars |
Questions this page answers
Should a first-time seller start on flow?
Usually no. Spot-sale once so both sides learn media and title, then price a flow off a real close.
Can we terminate a flow if media quality drops?
Write it in. Termination for eligibility or media slippage is ordinary. Hope is not a clause.
Do buyers pay more for flow volume?
Sometimes, if the dictionary is stable. They pay less if monthly tapes arrive late or incomplete.
Paired reading: Creditor liquidity options
Paired reading: Seller packaging
Tell us spot or flowFull forward-flow guide
Desk: portfolios@debtmarket.net · 561-254-6608. Institutional only. Not consumer collections.