Commercial Lenders: Sell Your Defaulted Loan Judgment
Your borrower defaulted. You got the judgment. Collection has stalled. We buy California commercial loan judgments — $10,000 and up.
$10,000 minimum · Commercial judgments · California superior court
Commercial loan judgment collection
Commercial lenders — banks, credit unions, private lenders, hard money lenders — regularly obtain judgments on defaulted business loans and lines of credit. The challenge is that the same business conditions that caused the default often make enforcement difficult.
We evaluate commercial loan judgments on the debtor’s current financial picture, not on the circumstances of the default. A borrower who defaulted two years ago may have rebuilt — or may have assets we can identify that weren’t there before.
What qualifies
We evaluate California commercial judgments in this category including:
- Business loan defaults — Judgment on a defaulted commercial term loan or revolving line of credit.
- SBA loan deficiency judgments — After liquidation of collateral, judgment entered for the remaining deficiency balance.
- Personal guaranty enforcement — Business principal personally guaranteed the loan; judgment runs against the individual guarantor.
- Equipment finance defaults — Judgment on a defaulted equipment loan or finance lease after collateral recovery.
- Merchant cash advance judgments — Judgment entered on a defaulted MCA agreement.
Minimum face value: $10,000. California superior court commercial judgments only.
Commercial lending judgment scenarios we see
Commercial lenders — hard-money funds, SBA loan holders, merchant cash advance originators, credit unions with commercial portfolios — end up holding deficiency judgments when foreclosure or default recovery falls short of the outstanding balance. The judgment is fully enforceable on its face. Whether it collects depends entirely on what the borrower still has and whether the lender wants to invest more time pursuing it. If selling appeals, sell your California judgment for a free evaluation.
Recurring scenarios:
- Post-foreclosure deficiency. Real property sold short at trustee’s sale; judgment entered against the borrower for the remaining balance. The borrower often still has personal assets — wage income, bank balances, other real estate — that survive the foreclosure but require active enforcement to reach.
- MCA enforcement. Merchant cash advance contracts are commercial, not consumer, which means California’s consumer-debt protections do not constrain enforcement. MCA judgments are aggressive assets — but they require active enforcement against debtor businesses that often run thin operating margins.
- SBA guarantee scenarios. SBA-backed lenders face specific sub-rogation rules that interact with the SBA’s own collection process. We evaluate the judgment on its face; specific SBA recovery obligations are something the lender resolves separately with the SBA.
- Charged-off balance-sheet assets. A judgment that the lender has charged off for tax purposes remains fully enforceable as a legal asset. Selling converts a zero-book-value entry back into cash on the income statement. See related auto dealer deficiency judgments for similar structures.
FAQ
The original collateral was already liquidated. Is there anything left to collect on?
If a deficiency judgment was entered after collateral liquidation, we evaluate based on the debtor’s current assets — real property, new business activity, wages. The deficiency balance is what we’re purchasing.
The loan had a personal guarantee but we only have a judgment against the business entity. Can you help?
If the guarantor wasn’t named on the judgment, enforcement against them individually is more complex. Tell us the exact structure of the judgment and we’ll assess what’s available.
We’re a portfolio lender with multiple judgments. Do you do bulk purchases?
We evaluate judgments individually. If you have a portfolio of related judgments you’d like us to review, submit them and we’ll discuss how to approach it.
We charged this off on our books. Can we still sell the judgment?
Yes. A charge-off is an accounting treatment, not a legal release. The judgment remains enforceable in the same form it was entered, and selling it converts an asset the lender has already written down to zero into cash on the books. See how we value a judgment for our valuation framework.
The loan was personally guaranteed. Does that increase the judgment’s value?
Generally yes. A personal guaranty gives enforcement access to the individual’s assets beyond the business entity. Where the guarantor has identifiable California assets — real property, wage income, bank deposits — the judgment is materially more valuable to a buyer than one limited to a dissolved corporate entity. See the types of judgments we buy for scope.
Get your commercial loan judgment evaluated
Commercial loan or credit default judgment, $10,000 or more? Free evaluation, one business day response.