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What is the recovery manager used for?

Find out how a recovery manager works!

Extrajudicial negotiation
What is the recovery manager used for?

The debt collection manager is the professional whose duty is to supervise and manage the financial area of a company. The objective of the debt collection manager is to ensure that the company receives all the money owed to it within the agreed deadlines and through the appropriate means.

The person who works as a debt collection manager must have the ability to access the client, the skills to collect outstanding debts and to meet the objectives set.

How to become a debt collection manager?

A debt collection manager works in a company and his or her duty is to follow up on the maturity of the instalments or loans due from the company's customers.

This person not only needs to have the skills needed to collect outstanding debts, but also the ability to achieve this goal. In addition, he or she needs to be an expert in accounting and have knowledge of finance.

Tasks of the debt collection manager

The debt collection manager has to be in charge of contacting the debtor customer the day after the default of payment. The contact has to be made at an appropriate time, either by e-mail, telephone or letter.

In the first contact, he/she only has to remind them of their obligation regarding the payment date and present them with some options to fulfil the payment of the debt. The debt manager should also contact customers who are close to the payment date to remind them of their commitment.

He/she should also try to negotiate the payment in order to achieve full and immediate collection of the amount due.

Characteristics of the recovery manager

The debt collector must have the ability to organise and manage resources in order to effectively manage the portfolio of clients assigned to him/her. He/she also needs mathematical skills to calculate instalments, discounts and interest for collection management.

This financial profile must have the ability to negotiate, listening to the client in order to reach a mutual agreement that benefits both parties. It is also important to have strong oral and written communication skills.

This is because collection management can be done in person, by phone, text message or email. The means of communication to be used will depend on the relationship with the client.

The recovery manager should be characterised by being empathetic, understanding the client's situation, but at the same time using a clear and firm dialogue. In which he/she demonstrates that he/she understands the situation, but that he/she must comply with the commitment made.

The collections manager must be a skilled person who knows how to respond appropriately to any objections. But apart from this, he/she must have very good interpersonal relations, knowledge of computer software and how to use a database.

Collection procedure

The collections manager needs to know when payments are due from his customers. This helps him to remind them to pay in advance or after the payment is due, so that the customer proceeds with the payment of his debt and thus avoids the consequent increase in interest.

In cases where you have a customer who has defaulted on his or her debt, no matter what the situation is, you have to seek a payment arrangement.

This is beneficial for both parties and thus avoids resorting to an order for payment procedure. These procedures are detrimental to the company because they increase the costs of collection.

The debt collector has to give advice to clients when they are not aware of the options available to them to comply with the payment of their debt.

What should a collection manager not do?

The primary function of the collection manager is to obtain payment of amounts owed. The debt collector can only act when the deadline for payment of the loan, invoice or any other type of debt has passed.

Because of this, the collector cannot interact with the client before the client is in arrears. There are other actions that a debt collector cannot and should not do, which are as follows:

1. Sending letters to the debtor that have the appearance of judicial summons.

2. Making telephone calls before 07:00 in the morning and after 10:00 at night.

3. Failing to identify yourself when contacting the debtor.

4. Trying to contact friends, relatives or acquaintances of the person who owes the debt, except in cases of joint debtors.

5. Threatening, intimidating, offending, intimidating or disrespecting the debtor client.

If you have a debt that you cannot pay and you do not know how to negotiate with your creditors, call us.

Extrajudicial negotiation

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