Already extrajudicial collection, is the one that takes care of debts that are not yet judicial. Because these are lower complexity cases than judicial collection cases, they are the most approached by collection advisors. These are debts that are still amenable to recovery, sorted by amount, arrears and type of debt. These are often cases of delays in telephone companies, loans that are still profitable or that do not compensate for a seizure and smaller financial debts from the business debt collection agency.

How was the collection office created?

For businesses that involve payment on time, billing becomes a problem. The reason is that, as this is not your main activity, creating a sector just to accomplish this task is not feasible. Another option would be to place debt recovery as an additional task in the routine of employees, but this does not produce the expected result, as well as impairing performance in normal functions.

  • From this, the idea of ​​making the collection an external part brought the collection office to life.
  • Billing advisors have become a good solution for companies in all segments because of their receiving and negotiating expertise. Because they work focused on collection and have a great deal of experience, debt recovery is superior to what would be achieved internally.
  • Another positive point for contractors is that the form of payment varies according to the difficulty of the portfolio and the amount of receipts. This factor is also good for advisors, as they are able to set goals and tend to improve their ability to collect in order to recover more debt that will generate more profit.

A few years ago, collection advisers were known to charge aggressively. However, over time, the collection approach has become much more strategic, seeking a balance for the lender and its borrowers. Currently, the position of the advisors is in line with their role as mediator in search of a good agreement.

How does a collection office work?

The foundation of work for collection advisors is the so-called collection portfolios. They are sent by the contracting companies and are basically a basis with the data of the debtors to be charged. From this data, the billing process begins.

What is Billing Wallet?

It is a list of people in debt to a particular institution. It contains personal data as well as debt-related data such as delay time and initial amount.

Ideally, the first step before attempting to regularize debt is strategic planning. It is he who will determine what are the first forms of contact, which can be approaches by phone, SMS, email and letter.

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