Delinquent accounts and collections are an inevitable part of the lending business. Delinquencies can cause cash flow and many other problems for an institution, and the process for recovering those funds can be time-consuming, expensive, and inefficient if you don’t have the right tools in place.
Utilizing outsourced collection servicescan be a more efficient, cost-effective option if your institution is striving to reduce delinquencies and the time employees dedicate to the collections process.
by. Brad Young
Here are the top 5 benefits of outsourcing your collection efforts:
- Reduced Collections Costs
Recovering funds that are past due is a detailed process. It may require hiring and training full-time collections staff or utilizing employees from different departments to work in a collections role. Outsourcing your institution’s collections to a third-party vendor, like SWBC, can save you the HR-related expense of hiring and training additional staff and also reduce other costs associated with the debt collection process.
More importantly, outsourcing to a third-party like SWBC allows you to take advantage of our scalability. This is the biggest reason we can save you money. We can deploy our resources to accommodate the ebbs and flows of the deliquent queue without being under or over staffed at any one time. In addition, we integrate a high percentage of part-time resources within our staffing model, further reducing the cost.
We also have robust telephony and dialer technology that we use to facilitate timely collections, which means you get to reap all of the benefits of this technology without the expense of purchasing and implementing it within your own organization.