Success Rate Valued Over Price When Choosing A Debt Collection Agency

Success Rate Valued Over Price When Choosing A Debt Collection Agency
by Takara Alexis

The latest "Global Collections Review" survey, lets us see a new trend amongst businesses when selecting a debt collections agency. Unlike in the past year, companies put more attention on the agencies' success rate, less the cost.

This craze can be seen amongst many major European countries and reveals a mindshift in European businesses seeking support from external agencies when collecting outstanding debt. The success rate of a debt collections agency easily allows comparison between collection agencies' performance. The success rate is defined as the value of collected payments of the total debt received and expressed as a percentage. The total excludes insolvencies and withdrawals.

Successful debt collections and establishing solvency is essential to business. The study has made clear that the choice of a collection agency is made based on its quality, meaning its performance and ability to succeed in collecting, and not price.

The ability of external debt collection agencies to deliver results is the key factor for businesses to employ a debt collections agency.

With the economy picking up and staff busy focusing on incoming business, collecting debt can again be seen as a task that is more frequently handed over to external agencies.

Leader in usage of external debt collections agencies is the Netherlands where 65% of the surveyed businesses have used this service and is much higher than in countries, such as Spain which remains at a low 20%.

Broken down by sectors, companies operating in the financial services sector seem to use a debt collections agency more often while in the other sectors, such as manufacturing, wholesale and retail trade and distribution, services, companies have a preference towards collecting internally.

Overall, European attitudes relating to the choices of debt collection agencies were incredibly similar, which indicates that the requirements, expectations and high standards demanded of agencies are constant factors irrespective of business size, type or location.

Rapid Recovery Solution is an attorney based collections agency specializing in debt recovery. Our collection agency attorney works non-stop along with our many experts at Rapid Recovery to quickly collect your money. Contact RRS for more information or request your FREE quote today!