Collection Work
Collection work refers to the task of organizations appointing collection experts for collecting money from clients. This is done to ensure the organization receives its dues on time and minimizes the potential bad debts. Collection work requires executives to contact the clients and encourage or compel them to make payments.
Work Nature
Collection work is about collecting dues from clients. However, it has certain variations, depending upon the nature of collection and purpose of calls.
- Debts Collections: This refers to the collection of debts from customers. Unpaid payments accumulate to form debts. All such clients, who have failed to make payments, are called up, given a warning and asked to make payments.
- Billing Collection: This refers to the collection of billing amounts from clients. This is more of a reminder call made to prevent debts and consequent losses. All clients whose payment is due are called up and given details of payment procedures.
- Credit Collection: This refers to the collection of installments and interests against a loan provided to the clients. They can be reminders or fine imposing calls made to ensure the organization collects the installments and interests on time.
Job Scope
Collection work involves several profiles handling various duties. Based on the role and responsibilities there are certain prominent profiles within collection work.
- Data Management: This includes all those profiles that gather data about the clients with dues or defaults. They compile data, mention details of the payment amounts and develop a caller's database. This data base is provided to the customer service executives.
- Customer Service Executives: These professionals are responsible to communicate with the clients. They provide reminders, and issue warnings to defaulting clients to make certain they pay due amount in time and in full. They call up the clients and also correspond with them via mails.
- Documentation Personnel: These professionals visit homes and offices of the clients in case the client is unavailable to do it himself. They visit them as per the appointments to collect documents and payments, conduct meetings or revise the payment rules, to ensure the clients make payments.
Work Requirements
Candidates must possess at least a high school diploma to qualify for a collections job. As long as candidates possess excellent communication skills, recruiters do not have rigid education qualification requirements. An associate or 4-years degree in business communication, business management or business administration is preferred. The key skills sought after in a candidate are:
- Knowledge of collection protocols and regulations
- Strong communication and coordination abilities
- Ability to communicate patiently and find out solutions
- Superior negotiations and convincing skills
- Excellent tracking qualities
Work Conditions
The work conditions for collection executives are similar to any typical client based office job. The key features are:
- Work Place: Most of the collection officers work from their offices. Only the documentation personnel are required to do traveling.
- Work Timings: All executives work for 40-45 hours a week. Working on weekends is common as clients have time only on weekends and can entertain calls. Some organization may ask the executives to work in shifts if required.
- Work Hazards: Communicating with clients is highly stressful job, especially for communication purpose. It is difficult to coordinate with unsupportive and fussy clients. Sometimes, the executives have to bear abusive language and rude behavior. Constant calls and traveling can add to the work pressures.
Career Prospects
Collection functions are vital for an organization to restrict the losses suffered due to unpaid dues. Hence, a collections team is appointed to ensure the clients make timely payments. The career prospects for collections jobs in all major financial organizations is expected to grow significantly.
Career Advancements
Collection executives begin as calling executives or documentation executives. Later, they move on to become supervisors or trainers. With further experience, they can become manager and head of department. The collection department offers fair growth opportunities.
Employment Industries
Collection teams are appointed mainly by financial agencies. Following are few examples of the same:
- Insurance Agencies
- Banks - Loan Department
- Banks - Credit Card issuing Departments
- Retail shops that sell commercial product on loan
- Hospitals / Clinics - Bill Collection
We hope this overview of collections work helps you in finding out your dream job
