As we know, collector’s abilities are not the only element in the efficiency equation. Effective debt collection requires a good leadership, specialized collector’s abilities, dedicated training sessions, efficient policies and procedures, technology, security measures and legal compliance.
So, the efficiency equation includes many components to be considered. In case one of them does not run properly, a clear impact can be seen in the final result.
It might seem that debt collection process is a result of the modern civilization. However the practice is as old as time, long before money ever existed, when people used bartering, exchanging goods or services for other goods or services. In case of an unpaid barter, debtors and their families were forced to provide physical labor until repayment.
In debt collections the self-service functionality starts to be embraced by more and more companies in all industries. The trend is clear and the results appear fast. It seems that telecom and insurance companies have been the first to provide self-service to their customers. Banks have been very fast in following the market trend as well.
When is the time to work with a debt collection agency?
It is not a “one size fits all” approach. Most of the companies make the first collection actions in-house. The definition of the “first collection steps” can be different from one company to another.