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We share with you the benefits of hiring a collection service with our contact center

Virtually any company requires its customers to pay. The reality is that not all of them do, according to Clever, a U.S. real estate company, 61% of Americans have a debt in their credit. However, there are companies that receive a large amount of payments every second, while others of their clients omit that obligation and require personnel to collect that money. It is in these cases where collection management is a fundamental task to maintain financial health.

If your company is in a similar case and you have considered having an area dedicated to collection management but you are not sure how much infrastructure you require or if it is more convenient to hire the services of an external agency or BPO, here we will inform you how we work when offering our services in this area as well as the different categories and phases that exist to help you choose the one that suits you best.

What is a collection service?

It is important to begin by clearly explaining what this service is. Although strictly speaking it is the management of the recovery of outstanding payments, the collection area can also have other types of activities that help, in general, the company to have healthy accounts that allow it to have a cash flow for the financing of its operations. This can be achieved through different strategies that we will see below.

A collection service can not only help to recover money from delinquent customers, but can also help to foster a payment culture that avoids economic detriment to the company. Simply put, it is a matter of turning losses into profits. However, effectively carrying out this process can be a challenge for many organizations. This is where the possibility of contracting a collection service with an external contact center comes into play.

What are the types of collections?

Before we dive into the advantages of hiring a collection service, it is important to understand the most common ones that exist:


This type of collection focuses on anticipating possible non-payment problems. It consists of establishing mechanisms and strategies to prevent customers from becoming delinquent. Preventive collection is based on proactive communication with customers to remind them of their payment commitments and resolve potential problems before they become bad debts.

Preventive collections is the most effective for a company’s finances, because by anticipating payment deadlines, it prevents customers from skipping payments. In addition, it creates education about the importance of timely payment, which will allow more customers to pay their accounts on time. There are also preventive collection strategies that allow the establishment of payment dates, as well as incentives for compliant customers or even charge automation and productive follow-up in the different customer contact channels.


On the other hand, this other type is activated once the customer has already incurred in arrears. In this case, different strategies and actions are used to recover outstanding payments, such as phone calls, emails, text messages, among others. Although this type of collection is the most requested by law firms seeking to recover the overdue portfolio, the reality is that preventive collection is the one that has proven to be the most beneficial for companies by preventing the client from simply not becoming delinquent.

Phases of collection

Collections management can be divided into several phases, ranging from the initial communication with the customer to the recovery of payment. These phases may vary according to the strategy and policies of each company, but generally include:

  1. Reminder: In this phase, friendly reminders are sent to customers to remind them of their payment commitments and prevent them from falling into arrears.
  2. Contact: If the customer does not respond to the reminders, it moves to the direct contact phase, where communication is established through different channels to negotiate a solution to the payment problem.
  3. Negotiation: In this phase, flexible payment options are negotiated and a mutually satisfactory agreement is sought.
  4. Recovery: If an agreement cannot be reached during the negotiation phase, the recovery phase begins, where more drastic measures are taken to recover payment, such as the application of additional charges or legal action.

At a legal level, there are stages of collection, where as the months go by, the aforementioned measures are taken. Here we show the most common ones, although each company has its own stages.

  1. 30 days without payment. In these cases, the collection area usually contacts the customer to remind him/her of the overdue payment and that he/she must pay as soon as possible. A payment plan may be worked out to get the customer back on track.
  2. 60 days without payment: The collection area passes the debt to credit reporting agencies and applies the applicable penalties. Several companies still allow a payment plan to be worked out.
  3. Write-off (extrajudicial): A firm will purchase the amount of the debt for a fraction of the balance owed and contact the client to collect what can be collected.
  4. Court (judicial): The firm has been unable to make contact and files a lawsuit.

When is a collection service necessary?

Here are some common situations in which a company may need to implement or outsource a collection service:

  • High levels of delinquencies: If the company faces high levels of delinquencies; that is, many customers do not meet their payments within the agreed-upon timeframes, this may indicate the need to implement a more effective collections service. Consistent delinquency can significantly affect the company’s liquidity and cash flow, so it is essential to take steps to recover outstanding payments.
  • Lack of internal resources: Many companies, especially small and medium-sized ones, may lack the necessary internal resources, such as trained personnel and specialized tools, to properly manage collections. In these cases, a customer service BPO can be an effective solution.
  • Inefficient collections processes: If the company’s current collections methods are not yielding positive results, such as lack of response from delinquent customers or high levels of complaints, it may be time to reconsider and improve collections processes. An external collection service can offer more effective strategies and approaches to recover outstanding payments.
  • Business growth: As a company grows and acquires more customers, collections management can become more complex and require specialized attention. An outsourced collections service can scale flexibly to adapt to the changing needs of the business as it grows.
  • Improved customer experience: Effective collections management is not only about recovering outstanding payments, but also about maintaining positive customer relationships and fostering a culture of prompt payment. Outsourcing this service through a BPO can ensure that customers pay on time through preventive collections and, on the other hand, that those who are delinquent are treated with respect and empathy, thus preserving customer reputation and loyalty.

Now that we have explored the types and phases of collections, it is important to highlight the advantages of contracting such a service with an external contact center. Some of these advantages include:

  • Expertise: Contact centers specializing in collections services are staffed with trained personnel experienced in handling sensitive situations, ensuring a professional and effective approach to payment recovery.
  • Use of multichannel: Contact centers use a variety of communication channels, such as phone calls, emails, text messages and social media, to maximize the chances of contacting delinquent customers and facilitate effective communication. Research shows that contacting first through a customer’s preferred channel can generate a more than 10% increase in payments.
  • Increased efficiency and reduced costs: Outsourcing collections management to a BPO contact center allows companies to focus on their core business, while collections experts take care of recovering outstanding payments in an efficient and timely manner. This can be more cost-effective than maintaining an in-house collections department, as it eliminates the need to invest in additional resources such as personnel and technology.
  • Improved Brand Image: Professional and respectful collections management can improve a company’s brand image and encourage timely payments.

We invite you to contact our sales team to learn more about how our collections service works and how it can be tailored to your business needs. In addition to this, we have other contact center services that can be useful for your company.

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