Why Is the Collections Department Important to Companies?

Debt collection and debt recovery are activities that require well-thought-out processes in order to achieve successful results and encourage the liquidity and solvency of businesses. 

Whether companies run an in-house department to collect their receivables or they outsource this task to a third party, such as an agency, they must develop a custom collection strategy based on their targets.  

Some of the factors that must be taken into account when tailoring a debt collection plan to a series of specific targets are:

• Customer segmentation

• Staff training

• Applicable laws on debt collection

• Existing resources or infrastructure

• Technology implementation

Complying with debt collection laws that are currently in force is crucial. Although these laws are limited to the national level, most countries share similar dispositions (commonly referred to as fair debt collection practices), such as:

In addition to these regulations, it’s important to learn about the key factors in successful debt collection and design strategies with customer behavior in mind. For instance, you can contact customers over different channels depending on the stage of default to achieve high contact and recovery rates. 

Debt Collection Software

Better tools, better debt collection processes

Interactions between collectors and debtors can be controlled and streamlined with an automated system. 

Using an integrated dashboard for keeping track of interactions across multiple communication means allows monitoring collection processes effectively. 

A set of applications for making customer information readily available to agents and updating databases on the fly is also essential to debt collection. 

SMS messaging is another tool that proves useful to improve collection strategies.

A CRM platform that can be seamlessly integrated with automated dialing systems is among the many functionalities that help debt collection.  

Nuxiba specializes in providing feature-rich solutions that guarantee high contact rates and lager debt recovery percentages. 

Our contact center software provides you with the most advanced technology and all the tools necessary to meet your targets. 

Download this free article including three recommendations for enhancing collection processes.