Transfering Collection Assignments

Having the same collector call the same debtor every month may not produce the desired results over time. It may seem counter-intuitive, but if you find your company's collection results are not as good as expected at least consider re-assigning your collectors to different customers and different territories.

Some might argue that collectors know how best to handle their accounts and therefore switching territories is not efficient. In reality, whatever efficiencies might be lost as a result of a decision to switch territories or customers could be more than offset by:

• Different collection techniques and a new perspective
• A renewed sense of urgency on the part of the new collector
• A desire by the new collector to outperform his or her predecessor
• The fact that the collector does not come with any preconceived notions about their customers and is less likely to accept the status quo as both normal and acceptable

Another advantage of re-assigning accounts or territories between and among collection specialists is that problems [such as disputes and deductions] that a collector might be trying to hide tend to come to the surface quickly when the new collector takes over their accounts. Still another advantage is that when collectors switch territories, the credit manager can assign new goals and establish new and more aggressive collection goals.

One way to look at the idea of transferring assignments between collectors is that if collection results are already below expectations you have little to lose by trying something different. Collectors might not be thrilled by this new idea, but it is better than the alternatives, that include:

• Collectors being terminated
• The credit manager being terminated
• Some or all of the collection process being outsourced
  

Source: Michael Dennis, author of "Credit and Collection Handbook" available at the NACM Bookstore.