The economics of the relationships you have with your collection agencies can go a long way toward getting the best possible recovery results. Here are three factors you should consider.
- Best Results
Leverage your experience and dashboard reports to put a fair value on the results you require, and the effort required to deliver them. Once you know how your agency partners are performing, based on monthly agreed-upon metrics, you can assess the return on investment and the overall value to your organization. Likewise, a fair rate lets the agency invest in the people, resources, and tools they need to match up with your expectations. - Establish Set Pricing
Establishing a preset fee structure will allow you to focus your assessments on key performance-related criteria rather than price. The percentage rate of commission should be less important than the agency’s percentage of return on the total dollars referred for collection. - Understand the Correlation Between Rate and Success
Often, a higher fee percentage will allow for a higher rate of success. Low collection rates often result in an agency scaling back its collection efforts. Instead of a low collection fee rate, you should focus on return on investment (ROI). we’ve provided this simple calculator to see how much you can increase recoveries for every dollar you spend: www.conserve-arm.com/calculator
Read more about the additional critical steps you can take to begin increasing your recoveries by downloading our free E-Book: 5 Steps You Can Take Today to Maximize Debt Recoveries.
