How many employees will I need for my debt collection business?

The answer to this question depends on how you plan to attract and keep business. Generally, most collectors work on a commission basis. In order to optimize the number of collectors you will need, you need to analyze the number and type of accounts you will be working with. Ask yourself these questions:

  1. How many accounts do I currently have? You want to have enough account to keep your collectors busy. If you have more collectors than accounts for them to work, you will soon find that you have a room of collectors bugging you for work. Make sure your collectors are assigned good accounts and that they have plenty of them to choose from. This will empower them to become successful in collecting for your business.
  2. 2. How good is the information on those accounts? Has the information been validated by a skip tracer or another 3rd party, and how current is the information? If you have good information, your collectors will spend less time trying to dial to find people and more time talking to people to work out their debts.
  3. 3. Are you collecting for a 3rd party or collecting on your own debt? If you are collecting for a 3rd party, there may be time stipulations on how quickly results on the data must be turned around. Additionally, you want to be sure that you are “staffed up” enough to make sure you respond to the accounts in a timely manner.

You need to have just enough accounts to keep collectors busy all of the time. This means that you will also need to stay busy looking for and searching out new and fresh accounts to give your collectors. As you cycle through your old accounts, make sure you have a big enough backlog of accounts to make up for the old or ineffective accounts that you are losing. This will allow your collectors the ability to focus on the accounts that make them and you the most money. Make sure you select a software that will allow you the ability to assign accounts to collectors and then allow those collectors the ability to follow up easily on those accounts.

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