Ty Schwamberger,
Head of Collections,
Elevex Capital

When you were a kid, did you ever wake up one morning and tell yourself, “When I grow up, I want to be a … debt collector.” I’m fairly certain the answer would be a resounding, “No!” But for one reason or another you now find yourself encased in the daily battle of trying to collect past due invoices, all the while trying to help protect your company’s bottom line. It is an important job that someone has to do, and it might as well be you, right?

I majored in history during college. Of course, by my senior year I had no idea what to do with such a degree (looking back, I really should have studied history/education like my Dad). After graduating in 2000, I bounced around for a year or so in retail to substitute teaching jobs, eventually landing my first collections role at a mail-order pharmaceutical company. Fast forward some 20-odd years later and I have grown to love the challenge. I suspect the collectors who are reading this article have a professional journey close to the same — you stumbled into the field years ago and have grown to enjoy it. At least, I hope that is the case. But whether you accidentally or purposefully entered collecting debt as a career, I think we can all agree that it takes a special type of person to do what we do every day. And what is the absolute minimum base skillset any collector must learn or already possess, you ask?

Being able to communicate (and listen) effectively.

But sometimes, even seasoned veterans of the collections game need a refresher course of how best to approach a debtor.

So, let’s get into it.

Why Communication is Your Most Powerful Tool

The equipment finance industry plays a crucial role in supporting businesses by providing the necessary capital to acquire essential assets. However, ensuring timely repayment of loans or leases is a significant challenge that finance companies must address. Effective collection strategies and customer communication techniques are vital to maintaining profitability while preserving strong customer relationships. By implementing proactive collection strategies, effective negotiation techniques and professional communication practices, lenders can enhance recovery rates and foster long-term customer trust.

But exactly how do we go about it?

Early Intervention: Stop Delinquencies Before They Start

One of the most effective ways to prevent delinquencies from escalating is through early intervention and proactive communication. Research has shown that customers who receive timely reminders and personalized outreach are more likely to remain current on their payments. By establishing a structured follow-up process, finance companies can identify potential delinquencies before they become unmanageable. Automated reminders via phone calls, emails and text messages provide borrowers with convenient payment options while reinforcing accountability. Additionally, personalized communication fosters a sense of trust, making customers more willing to cooperate and resolve outstanding balances.

Early intervention strategies should include multiple touchpoints before a loan or lease becomes delinquent. This can involve reminder calls a few days before due dates or follow-up emails for missed payments. Implementing a tiered approach where highrisk customers receive additional engagement can help mitigate default risks, as well. Finance companies should also leverage data analytics to predict potential delinquencies and tailor their outreach accordingly.

Your phone call or email has solicited a response from your customer, now what?

Negotiation that Works — For You and The Customer

A key aspect of collections is negotiating payment arrangements that are feasible for borrowers while ensuring the lender recovers the owed amount. Effective negotiation requires active listening, empathy and flexibility. Collectors must assess a borrower’s financial situation and proceed accordingly. Utilizing a problem-solving approach instead of a confrontational stance enhances the likelihood of a positive outcome. Offering incentives, such as crediting late fees, can further encourage borrowers to meet their obligations if already past due.

In a future article, we’ll get into understanding how people think and how that can lead to better negotiation tactics with delinquent borrowers, but for now finance companies should encourage a collaborative approach where borrowers feel they are working towards a solution rather than being “pressured” into payment (even though, you and I both know that one way or another they need to pay ASAP).

So, you’ve gotten the customer on the phone, went through all the various negotiation tactics to get them to pay, but now they have a billing dispute or are just being outright difficult or unruly. This is where the fun part of being a collector comes into play, right? Right.

When Customers Push Back: Handling Disputes and Difficult Calls

Disputes and difficult customers are inevitable in collections. Successful resolution requires a structured approach, including thorough documentation, active listening and transparent communication. Collection agents must remain calm and professional when handling disputes, focusing on factual information and policy adherence. Providing borrowers with clear explanations of their contractual obligations and offering dispute resolution options can de-escalate conflicts. Mediation services and third-party intervention (sales, anyone?) may also be utilized in complex cases. By demonstrating fairness and flexibility, lenders can mitigate hostility and improve repayment outcomes.

Lenders should also develop comprehensive training programs that equip collection agents with conflict resolution techniques. Role-playing exercises, de-escalation training and case studies on dispute handling can enhance their ability to manage challenging interactions. Implementing an internal escalation process where unresolved disputes can be reviewed by management ensures that customer concerns are addressed fairly and efficiently.

The Power of Positive Language and Emotional Intelligence

As previously alluded to, customer communication is the cornerstone of successful collections. Professionalism, empathy and tone should guide every interaction, ensuring that borrowers feel heard and respected. Agents must use positive language, express understanding of financial difficulties and offer supportive solutions. A customer-centric approach increases cooperation and reduces resistance, ultimately leading to a better outcome for all parties involved. Training staff in emotional intelligence and active listening can further enhance their ability to engage constructively with customers.

Going Digital: Automate Without Losing the Human Touch

Implementing automation tools for personalized email and voicemail campaigns can also help streamline communication while maintaining a human touch. Regularly updating templates based on regulatory changes ensures compliance and avoids legal repercussions. Furthermore, integrating multi-channel outreach, including SMS reminders and chat-based support, can improve borrower response rates. I’m a huge fan of alternative approaches to customer outreach (i.e. not relying on physically having to pick up a phone every single time), so we’ll discuss collecting in the digital age in a future article, as well.

Balancing Assertiveness with Empathy in Equipment Finance

Collections within the equipment finance industry require a balance of assertiveness and empathy to achieve successful outcomes. Implementing proactive collection strategies, leveraging negotiation techniques, while maintaining professional communication and de-escalation skills, all attribute to a positive outcome. By adopting best practices, finance companies can improve cash flow, reduce delinquency rates, and foster trust within the industry. Ultimately, a strategic and customer-focused approach to collections leads to long-term success for both lenders and borrowers.

The Collector Chronicles by Ty Schwamberger is an exclusive series to Monitor that explores the challenges of business-to-business debt collections within the equipment finance industry. •

Ty Schwamberger has been involved in accounts receivable management (ARM) within various industries for over 23 years. He is well-versed in the numerous collections and bankruptcy laws, believing great listening and negotiation skills are at the forefront when dealing with those experiencing financial challenges.

Before joining Elevex Capital in January 2025, he was the AVP of Member Solutions (Collections) at a NE Ohio credit union. Elevex is his entrance into equipment finance and is excited to immerse himself in the industry.

Schwamberger and his wife live in Brecksville, OH, with their two sons.