Jefferson Capital buys portfolios of nonperforming consumer loans at deep discounts to face value from banks, fintechs, auto lenders, telecom companies, and other credit originators, then collects on those loans, generating revenue from the spread between what it paid and what it recovers. The company operates across a broad range of consumer asset classes — credit cards, secured and unsecured auto loans, utilities, telecom, and insolvency accounts — with a particular focus on small-balance accounts, where Jefferson Capital argues its proprietary data and analytics create a valuation and servicing edge. Jefferson Capital buys portfolios through both one-time spot sales and forward flow agreements, the latter providing predictable deployment volumes over 6–12 month windows. Collections run through voluntary channels (call centers, digital outreach, direct mail) and a legal channel for consumers with the ability but not the willingness to pay. Jefferson Capital outsources labor-intensive collection work and retains underwriting, analytics, and collection strategy internally, giving it a largely variable cost structure. The company reports a cash efficiency ratio in the high-60% to low-70% range, meaning it retains roughly $0.68–$0.72 of every dollar collected after collection costs. Beyond its core portfolio business, Jefferson Capital also services nonperforming loans on a fee basis and earns credit card revenue in Canada. Jefferson Capital operates in the U.S., Canada, the U.K., and Latin America, and is the largest insolvency debt buyer in Canada — a niche requiring specialized expertise that limits competition.