Low balance debts – are they commercially viable to collect?
As it stands, the reason for this is commercially obvious. Cost to collect, high volumes, time and resource are all major barriers that many companies struggle to overcome.
Finding an outsource partner who can offer a cost effective, full collection strategy has previously been difficult, for the reasons highlighted above. A typical debt collection solution still has to support significant overheads and this can severely impact profit margins. To overcome this, providers are forced to charge extortionate commission rates, meaning that the creditor is left with minimal return, even if the recoveries are high.
Many utilise a ‘one size fits all’ strategy which is targeted towards the most profitable cases. With limited ability to vary or enhance their internal processes due to ridged operating systems or limited I.T. development - many continue with archaic strategies that are not suited to low balance accounts.
These factors have forced many businesses to stop outsourcing low balance debt altogether....so what is the solution?
COLLECTaDEBTpro’s transparent fixed cost model solves this problem. Through the use of intelligent multi-media solutions, each debt will always receive a full and thorough collections strategy that works in harmony with your current processes to maximise the portfolio’s potential. The price for this solution is incredibly cost effective and you even have the ability to add reasonable late payment fees/interest to the overdue balance, which can offset our costs in full. No additional commissions or fees are ever charged and every penny collected is retained by our clients.
Our strategic modelling ensures compliance risks are also dramatically reduced, limiting the exposure to your businesses brand compared to conventional debt collection solutions.
Depending on the age and debt type, COLLECTaDEBTpro are achieving up to 80% recoveries from low balance debt portfolios whilst significantly reducing our clients overall outsourcing costs.
For further information, please peruse the website or email us at email@example.com. Alternatively, you can call us on 0845 218 5225 for an informal chat.