News Article

Sector Analysis

USA - Credit & Collection Practices 2008

By CreditMan Wednesday, March 4, 2009

The credit & collection practices to uncover the most effective techniques and strategies for improving collection performance and reducing uncollectibles. We have researched customer service organizations across the U.S. to provide a thorough overview of best practices in credit and collections

The report explores how companies are balancing the cost of collection to reduce uncollectibles and improve the bottom line. We also examine the technologies that have retooled credit and collection processes for maximum effectiveness and efficiency. Finally, we look at how companies have established credit policies to support collection efforts.

This report profiles participants in a case study format, sharing current practices, lessons learned, challenges overcome, plans for the future, and business practices that have led to improved performance. In addition, we will provide detailed results and analysis from the survey itself and detail "best practices" demonstrated by our participants. Finally, we explore the successes achieved.

As part of this research, companies reported cost and operational data to enable the calculation of several credit and collections performance benchmarks:

- Cost per Collection Treatment Action
- Collection Actions per FTE (per month)
- % Net Retail Write Offs
- Equivalent Number of Days of Revenue Outstanding
- % 30, 60, 90 Days in Arrears

Analysis featured in the research:

- Collection Performance
- Credit Issuance Practices
- Collection Treatment Criteria
- Collection Treatment Action Timetable
- Field Enforcement Practices

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