The seventh annual Collections Effectiveness Survey was presented at the ELFA’s 2016 Credit and Collections Management Conference and showed that delinquencies and charge-offs are increasing.
The survey was started in 2010 to bring collections professionals together to talk about important issues and learn from each other. Each year the survey results are presented at the conference in an open forum to allow attendees to discuss the findings together.
This year, the moderators who presented the survey findings were Brett Boehm of TBF Financial and Jim St. Clair of DLL. In addition, Barry Ripes of PayNet opened the forum with a slide show of the current trends in the equipment finance industry pertaining to delinquencies. These industry experts compiled and analyzed the data with the assistance of Bill Choi of ELFA.
The data collected was grouped by company, ticket size and organization type, while capturing information pertaining to aging of receivables, productivity measures, resources assigned to collection activities and outsourcing strategies.
PayNet forecasts an overall increase in defaults in 2016, with specific industries such as transportation, mining, information and construction leading the way. While 2016 defaults are expected to reach a peak since the recession, PayNet’s analysis projects that default will decline a bit in 2017.
Highlights from the Collections Effectiveness Survey include: