A placement success rate (sometimes called a collection rate or recovery rate) is a metric that expresses the percentage of accounts referred to a collection agency on which any recovery was achieved — whether full payment, partial payment, or a settled arrangement. It tells you how often the agency gets a result, not just how much it collects.
How to interpret it:
- A high success rate on a portfolio of very recent, well-documented accounts may be easier to achieve than the same rate on older or disputed accounts. Always ask what types of accounts the rate was calculated on.
- Success rate alone does not tell the full story — it should be read alongside the average collection amount and the commission rate to understand the net return per account.
- Ask whether the rate is calculated on the number of accounts or the value of accounts — these can produce very different numbers on the same portfolio.
What to ask when evaluating an agency:
- What is your success rate on accounts similar to ours (by age, value and industry)?
- What percentage of referred accounts resulted in payment in full vs partial recovery vs arrangement?
- How does your rate vary between fresh placements (under 90 days overdue) and aged accounts?
To discuss Merion's performance data for accounts in your sector, request a consultation.
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