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Recession strikes the United States roughly once every 10 years and delivers a lethal blow, particularly to the startups and small businesses. No one can predict the exact timing or the length of a recession.

During these tough times, buyers disappear, many of your clients will cut their budgets, downsize or discontinue several services or products that they use. Small businesses which survive this downturn are the ones who certainly experience an exponential growth once the economy starts to turn around. Since many of your competitors will bundle up during the recession, it creates a huge vacuum when the demand starts to pick up again. Therefore, recession can actually be an opportunity for growth for those who sail through these rough seas.

• Hire a Debt Collection Agency to recover money from unpaid bills of customers who you have already serviced. This should be done quickly because of the financial condition of most people starts to incrementally-deteriorate as time passes by.
• Accumulate or secure enough working capital, set up a cash flow planner. Best time to secure financing is before a downturn hits, plan in advance.
• Hold daily scrums (short group meetings), let everyone speak up what they did and plan to do in the following days. This also helps to boost the productivity of employees.
• Reducing headcount should be done judiciously. In-fact you can hire the top talent who has been laid off from your competitors.
• Take your accounts receivable very seriously, hire a Debt Collections Agency. People are less likely to pay if the recession prolongs, so act quickly and shorten your receivables cycle. Instead of waiting 90 days, transfer accounts to collections after 60 days after the payment was due.
• Maintain or improve your credit rating. Small business loans are often among the first to disappear during a recession. Use debt or lines of credit very sensibly. Curb non-essential spending. 
• Do not fire your marketing staff. They are your wings. Trim if really needed. Look for low-cost marketing options like digital marketing.
• Keep communicating with your customers. Their requirements might have changed versus a year back. Instead of reducing the price of your product, throw in more features. This is the time to offer more not less. Additionally, keep your clients informed of your other products and services.
• Start a business referral policy with your existing clients, reward them when you succeed in winning that customer.
• Go above and beyond, which may include courtesy calls to your clients. In good times a client is like your business partner, but during hard times he is your God.
• Expand internationally if you can. Last recession (Great recession of 2008-2010) impacted USA severely but was not so bad for many foreign countries.
• Delay unnecessary purchases like new laptops or furniture. Think about ways to reduce inventory costs.
• Negotiate concessions from your own service providers and suppliers. They don’t want to lose you either during a recession. Can you get the same item or service for a better price?
• Prepare for better times. Have a strategy to scale up when new orders pick up.
• Sometimes during the recession, the damage happens from inside by ill-informed employees spread negative news about your company to other employees and customers. If things are under control and you have a proper plan and vision, then share it with your employees so that they think and talk positively about the company.
• Diversify your services and product in good times, so that entire business is not impacted adversely.  But during the recession, focus more only on your core business expertise and those areas which are most profitable.

If you are looking for a Collection Agency to assist with your accounts receivable: Contact us

Being in the accounts receivable industry, we interact with customers all the time, often personally over a cup of a coffee. Nearly all small businesses are constantly looking for ways to increase profits quickly, without increasing costs or by taking drastic measures.

Here are the ten simple changes you can incorporate easily to increase sales, cut costs, increase profits and recover your own money.

1. Handle Account Receivables Efficiently:

• This is the money which should have already come to you. Having a proper plan to address past-due accounts will immediately improve your cash flow and profitability.
• Most businesses do not have their own sufficiently trained staff and tools to recover money, and it is a lot cheaper to transfer accounts to a reputable third-party Collection Agency.
• Nearly all our small business clients are pleasantly surprised how much of a difference it makes when this unexpected cash is infused from accounts that they had virtually written off from their books. Some clients were just a bit non-serious about transferring accounts to a Collections Agency after 60-90 days of non-payment. Click here to find the cost of hiring a collections agency.
• Charging a late fee is a great way to encourage clients to make payments on time.

2. Cost Cutting:

• Cost-cutting does not always mean laying off people.
• If your small business is experiencing a temporary slowdown or you need extra cash to be infused to improve your profits, then do a deep review if you are overspending on the services subscribed. May be you can you downgrade that service plan by one notch and work nearly the same way.
• You have possibly leased out too much office space. 
• May be you can turn off that air-conditioner of the conference room which is hardly used. 
• Those magazines, industry publications, or that cable TV connection can be canceled which no one uses. 
• May be the frequency of your cleaning crew can be reduced by half. 
• Have you been taking advantage of all the tax breaks that you can qualify for. Asset depreciation is a big tax break that many businesses overlook.
• A careful assessment of maintenance contracts or warranties that you have subscribed.

3. Increase your rates:

• Have the cost of your raw material increased recently, yet you have been absorbing those costs without passing them on to your customers?
• May be you are undercharging compared to your competitors in your geographic area.
• If you genuinely explain to customers the underlying reason for your own increase in operational costs, most of them would be willing to accommodate a 2% to 10% increase and will likely not threaten to leave you.

4. Are you being overcharged?

• Can you get the same raw material from a different supplier for a lower rate or online?
• Reduce the logistics cost by selecting someone nearby.
• Or may be you can re-negotiate with your existing supplier to lower his costs by giving references of other suppliers you just researched.

5. Bigger and repeat orders:

• Is your sales team concentrating only on bringing in new business and forgetting about reorders from existing clients?
• Yes, clients often forget to reorder them-self until someone reminds them.
• Maybe their business has been doing quite well and can easily place a larger order than last time.
• Why don’t you reach out to your old customers who have stopped using your service a while back, and offer them special promotions to re-board.

6. Using technology efficiently

• A very simple example is that fax machine that breaks down twice a year or requires servicing or ink refill. Ditch that and go with online fax services which charge as little as $5 per month for unlimited faxes.
• Paying for toll-free numbers from traditional land-line providers can be a rip-off. Newer providers like Grasshopper and Mightly Call are super cheap and provide tons of free add-ons, for which you might have been paying a premium price with your existing provider.
• May be your website hosting provider is too costly, prices of cloud hosting have dropped significantly in the last few years and new providers often transfer your website to their platform for free.
• Your IT costs could be unnecessarily high too.
• Even big businesses have started using WordPress for hosting their websites and online stores. WordPress is super-duper cheap to setup and run. It can be integrated with almost anything you can imagine and software/security upgrades are almost always free. Godaddy and Amazon Web Services are my personal recommendations.

7. Online advertisement for sales:

• Facebook Advertising and Google Adwords are excellent places to find new customers. To be honest, you do not need to hire anyone to do this for you, it is very easy. Watch a few online video’s and you will be good to go.
• Instead of hiring a new salesperson, you can get five times more sales leads by doing targeted advertising on these Google/Facebook platforms. Do not be fearful of trying these out, you can set monthly budgets, and these online platforms will never charge you beyond that. Start small and then increase budgets once you become more comfortable using them.
• Higher sales will quickly increase profits for your small business with this simple change. 

8. Boost operational efficiency:

• Are those daily/weekly meetings really helping you?
• Can your receptionist or a clerk who is not being 100% utilized to take care of some additional tasks?
• Is your inventory system automated? Labor-intensive tasks are more prone to mistakes.
• Are you using cost-effective accounting software? In recent years, providers like Zoho have been offering the same services like the big guys but at half the price.
• Ask your employees how your office efficiency can be improved or unnecessary costs can be cut, and give rewards ( like gift cards) for those brilliant ideas which you decide to adopt.

9. Offer long-term plans:

• If a significant portion of your customers utilize your services only for a few months and leave, offer a discounted yearly plan if they pay upfront.
• You will get more money from the same client, and probably after one year, they will love your service so much that they will renew your service again.

10. Be Certified:

• Those accreditations, licenses, and certifications may be easy to get and may appear to carry no value. But they play a huge role in gaining the trust of potential clients who do not know you but believe in those certifications.
• Make strategic alliances with other companies so that your clients can get more services under one platform.

Each collection agency has its own set of strengths ( and shortcomings). Selecting a debt collection company that fits your needs requires carefully evaluating their services, experience, and recovery rates.

Here is the list of the biggest debt collection agencies in the United States.

1. Transworld Systems Inc (TSI)

TSI has been the biggest collection agency for quite some time now. It also has Rocket Receivables and TSI commercial divisions. It has been serving the USA’s collection industry for nearly half a century now. Subsidiaries include NCO Group and North Shore Agency. Their website states that TSI manages a portfolio of over 25 billion and over 35,000 clients. The corporate office is located in Fort Ross, IL. In 2019, TSI also acquired NCI ( Altisource), making it an even bigger player.

Need a collection agency with 20+ years of experience? Contact Us

2. The Kaplan Group

One of the largest commercial collection companies in the USA. The owner, Dean Kaplan has 30 years of business and negotiating experience, has closed over $500 million of transactions (per Linkedin), and has an MBA from a top 5 university. 85% Success Rate on viable claims over $10,000.

3. Midland Credit Management (MCM)/ Encore Capital Group Inc

Encore Capital Group is a global specialty finance company with 66 years of operating experience and has over 8,500 employees across 17 countries. Through its subsidiaries, Encore purchases portfolios of defaulted consumer receivables at deep discounts to face value and manages them by working with individuals as they repay their obligations and work toward financial recovery. Location San Diego, CA.

4. Portfolio Recovery Associates (PRA Group)

PRA Group (Nasdaq: PRAA) began in 1996 as Portfolio Recovery Associates, headquartered in Norfolk, Virginia. Over the past 20 years, PRA, through its subsidiaries, has grown to become one of the largest debt buyers in the world, with more than 5,700 employees in 16 countries throughout the Americas and Europe. They also do business as Encore Capital Group.

5. LVNV Funding

LVNV collects debt through its wholly-owned subsidiaries Resurgent, Alegis Group, Sherman Financial, Pinnacle Financial Group and many others.

6. Alorica Inc. / EGS

Alorica Inc. is the holding company of various direct and indirect subsidiaries, including EGS Financial Care, Inc. (EGS FC), Systems & Services Technologies, Inc. (SST), and Global Receivables Solutions, Inc. (GRSI). EGS FC and GRSI are licensed debt collectors, and SST provides back-office receivables services. Many of Alorica Inc.’s subsidiaries operate under the brand, Alorica, but all remain separate legal entities.

7. Altus GTS Inc.

Per their website, Altus is the largest commercial collection agency in North America.

8. Weltman, Weinberg & Reis

Weltman, Weinberg & Reis is a large Cleveland-based collection law firm.

9. GC Services:

GC Services is one of the oldest and largest privately-held collection agencies in the United States. They provide a range of services including third-party debt collection, customer service, and accounts receivable solutions.

10. Sherloq Solutions:

Sherloq Solutions is known for providing revenue cycle management and accounts receivable solutions, primarily to the healthcare industry.

11. IC System

IC System is a family-owned collection agency that has been in business since 1938. It is a nationally recognized debt collection agency with over 85 years of experience. They focus on ethical and efficient debt recovery solutions for various industries, including healthcare, retail, education, and government. With strong data security protocols, it attempts to maintain positive relationships with consumers. 

Other large collection agencies include.
– Enhanced Recovery Company (ERC)
– NCB Management Services
– Nationwide Credit (NCI) / ALTISOURCE / American Creditors Bureau
– Harris and Harris
– Suburban Credit Corporation
– CBE Group Inc
– ConServe
– Pioneer Credit Recovery (Navient Corporation)
– Prestige Services Inc (PSI)
– Performant Recovery Inc (Premiere Credit of North America)
– AFNI Collections
– AARGON Collections
– Alliance One

We can assist you in selecting a good one based on your specific requirements based on our experience and opinion.

Most collection agencies are private entities whose revenue is not often disclosed. We have compiled this list based on many parameters on the internet – employee size, companies that report revenue, complaints, etc.. We believe this list is nearly accurate. To help us improve this article (in case we have missed out on any), email us at support@nexacollect.com. Their size does not sort the list above.

AMCA, one of the biggest medical collection agencies, was shut down because of a huge data breach that proved too costly.

The debt collections industry is undergoing rapid transformation as artificial intelligence (AI) reshapes traditional practices. Historically reliant on manual processes and human interactions, debt collection agencies now leverage AI to improve efficiency, ensure compliance, and enhance customer relations. This article examines how AI is revolutionizing debt collections, explores essential legal considerations, discusses impacts on employment, and highlights survival strategies in this evolving market.

Legal Constraints on AI in Debt Collection

Navigating legal constraints remains a significant hurdle when integrating AI into debt collection. Regulations like the Fair Debt Collection Practices Act (FDCPA) in the U.S. strictly control interactions between collectors and debtors. Using AI-driven avatars or fully automated systems to initiate direct debtor contact is generally prohibited to prevent harassment and maintain transparency.

However, when debtors initiate contact, AI systems can legally assist by facilitating payment plans, providing basic information, and offering immediate support—provided human assistance remains readily available. This ensures compliance and elevates the debtor experience simultaneously.

AI’s Impact on Debt Collector Jobs

AI significantly transforms the roles of debt collectors, reducing repetitive tasks and enhancing their ability to manage more complex debtor interactions. Key ways AI supports collectors include:

• Personalized Communications: AI uses data analytics to create customized outreach strategies based on debtor behavior.
• Predictive Analytics: AI algorithms identify accounts most likely to settle, allowing collectors to prioritize efforts effectively.
• Compliance Automation: AI tools automatically verify all communications comply with regulations, minimizing human error and legal risks.
• Account Categorization: AI quickly assesses which accounts are best suited for digital outreach, phone calls, written communications, or legal actions.

Debt collectors must now build additional skills, particularly in data analysis, strategic planning, and digital engagement to effectively collaborate with AI technologies.

Transforming Sales Roles in Collection Agencies

Sales roles within collection agencies are similarly evolving. Sales professionals now adopt a more consultative approach, utilizing AI-driven insights to:

• Identify Quality Leads: AI analyzes large datasets to pinpoint potential clients.
• Enhance Customer Relationships: AI tracks client interactions to forecast future service needs, creating opportunities for upselling and improved client retention.
• Optimize Performance: AI-driven analytics help sales teams determine which strategies yield the highest success rates, enabling continuous improvement.

These capabilities allow sales teams to focus on high-value activities, ultimately fostering stronger client relationships.

Improving Collection Rates with Advanced Data Analysis

AI’s capacity to process massive data sets provides invaluable insights, significantly improving collection outcomes. AI analyzes debtor information, including payment histories, credit reports, and communication patterns, to:

• Prioritize High-Value Accounts: Concentrating resources on accounts with the highest likelihood of repayment.
• Tailor Communication Channels: Identifying optimal methods—emails, texts, phone calls—for reaching specific debtors effectively.
• Forecast Payment Probability: AI predicts repayment likelihood, informing strategic decisions and resource allocation.

By harnessing AI-driven analytics, collection agencies substantially boost success rates while reducing operational costs.

AI’s Role in Debtor-Initiated Interactions

When debtors proactively seek resolution, AI tools effectively manage initial interactions without breaching regulatory restrictions. AI-powered platforms offer immediate assistance by:

• Guiding Payment Arrangements: Helping debtors set up flexible repayment plans.
• Calculating Accurate Amounts: Providing precise calculations for interest, fees, and outstanding balances.
• Ensuring Human Accessibility: Maintaining direct access to human representatives for complex queries or disputes.

This balanced integration enhances debtor satisfaction, ensuring compliance and positive customer experiences.

Industry Consolidation and Strategies for Survival

AI adoption accelerates industry consolidation, challenging smaller firms unable to invest significantly in technology. To stay competitive, smaller agencies may merge or form strategic partnerships, pooling resources to integrate AI effectively. Firms successfully adopting AI are positioned advantageously to:

• Adapt quickly to regulatory changes.
• Meet evolving client expectations.
• Achieve higher efficiency and collection rates.

Conclusion

Artificial intelligence is rapidly transforming the debt collections industry, automating routine tasks, refining data analytics, and elevating debtor experiences. While strict legal frameworks limit certain AI applications, significant opportunities exist within compliant use cases. Industry professionals must embrace AI collaboration by cultivating new skills, particularly in data analysis and strategic planning.

Strategically integrating AI enables collection agencies to improve operational efficiency, maintain compliance, and deliver superior customer service—key ingredients for thriving in the evolving debt collection landscape.