Key Factors to Successful Debt Collection

In order to develop efficient business strategies, collectors are required to take into account the fundamental and integral aspects of their companies that can achieve high contact ratios and recovery rates.

There is more to debt clearing than meets the eye; it is directly related to interaction techniques, staff skills and characteristics, consumer protection regulations compliance, and even the profile of delinquent account holders.

The recommendations described hereunder are some of the means through which collections can be improved.

Your Workforce

Providing agents with constant training is of the essence, given that they obtain first-hand information from debtors. However, it is advisable that you give access to update and complementary courses not only to these parties, but also to those in charge of administrative and management departments. Remember that the more knowledgeable your representatives are, the more your recovery rates are likely to increase.

Persuasive communication is a skill at which not everybody excels, yet it can be strengthened and enhanced by deploying campaign-specific scripts in your contact center.

Effective agreements enable employees to deliver top-level results. Though it is true that mediation abilities depend largely on personality traits, it comes in handy to implement programs on negotiation (and more importantly on the psychology aspects in connection therewith) so your staff members are well versed and prepared to meet challenges on a daily basis.

A way for promoting high performance levels among your workforce is to pay them for every liquidated debt, rather than through fixed wages. This approach, according to renowned creditors and finance specialists, reduces the risks related to the loss and leak of resources.

Your Operations

Controlling your accounts in arrears allows you to keep track of individual overdue payments and deadlines. Moreover, creating a database based on useful factors like delinquency, owed amount, or city will streamline the identification of debtors and the abidance to fair collection practices.

Pay close attention to all your portfolios; it proves wise to direct all your efforts to significant defaulted debts whose recovery has been delayed for a long time; nonetheless, you must not forget about your recent targets. Portfolios become old and, therefore, working against the clock is imperative.

Give indebted parties the opportunity of restructuring and proposing their payment schemes through a win-win negotiation. Keep in mind that your main and sole goal is to retrieve complete profits, even if it takes to extend due dates.

Your Tools

Integrating technology into your activities improves both your customer interactions and collection statistics. Deploying a dialing system that saves time and effort by detecting and discarding no-answers or uncontactable numbers, as well as keeping a record of delinquent account holders and having their information at hand is crucial to your success.

Nuxiba has designed the best debt collection-oriented software: CenterWare Xion X5. A high-performance platform featuring a wide variety of functionalities, such as predictive dialers, the most advanced CRM application, next-generation IVR tools, and recorders that protect your business and clients, all in a single interface.

To learn more about these solutions, click here.