It is recommended to assign accounts for collections roughly when they are between 60-90 days past due for a maximum recovery rate.
The recovery rate dips as the account gets old. The following chart demonstrates the relationship between the Account-age and Recovery-Rate.
Still, there are some industries where the average recovery rate is better than others.
Based on clients we came across last year (2021), here is the average recovery rate we have seen, along with our collection agency partner(s).
This is purely our own experience. No collection agency publically publishes the results they achieve by industry. But it should give an idea of what to expect.
|Lawn & Garden||59.87%|
|Plumbing, Heating, Air||53.30%|
|Medical / Athena||42.46%|
|Auto Supply & Repair||38.02%|
|Contractors, Special Trade||36.76%|
|Elementary/ High School||24.59%|
|CPA / Accounting||22.16%|
|Rentals, Equip, etc.||17.71%|
|Social Services Misc.||16.66%|
|Real Estate Management||15.34%|
|College/Univ/ Prof. School||12.08%|
|Legal Services / Lawyers||9.94%|
|Moving / Storage||8.32%|
|House Rent Collection||6.96%|
Commercial accounts (B2B) have a better recovery rate than (B2C) accounts.