The difference between good and great collection teams isn't just about working harder—it's about structure, skills, and systems. A well-designed collection team can achieve 2-3x the results of a poorly organized one, with the same number of people.
This guide covers how to build, structure, and continuously improve your collection team. Whether you're starting from scratch or optimizing an existing team, these principles apply.
Team Structure: Finding the Right Model
How you structure your collection team depends on your AR volume, customer base, and complexity. There's no one-size-fits-all answer, but there are proven models to consider.
Model 1: Generalist (Everyone Does Everything)
Each collector handles their assigned accounts from first contact through final resolution. They manage early-stage outreach, escalations, disputes, and everything in between.
Best for:
- • Smaller teams (1-5 collectors)
- • Relationship-heavy B2B
- • Complex, high-touch accounts
Watch out for:
- • Inconsistent approaches across team
- • Key-person dependency
- • Difficulty scaling
Model 2: Specialist (Divide by Function)
Different team members handle different stages or types of work: early-stage outreach, high-risk accounts, disputes, legal escalations.
Best for:
- • Larger teams (6+ collectors)
- • High volume, transactional AR
- • Complex dispute patterns
Watch out for:
- • Handoff friction between stages
- • Lost context during transitions
- • Finger-pointing when things go wrong
Model 3: Hybrid (Customer Segment + Specialization)
Collectors own customer segments (by size, industry, or geography) but specialized resources handle specific functions like disputes or legal.
Best for:
- • Mid-size teams (4-10 collectors)
- • Diverse customer base
- • Mix of relationship and transactional AR
Watch out for:
- • Complexity in assignment logic
- • Resource allocation between segments
- • Requires more management attention
Workload and Capacity Planning
Getting the right number of accounts per collector is critical. Too many accounts means important ones don't get attention. Too few means you're overstaffed.
Capacity Planning Guidelines
- Standard B2B: 250-400 accounts per collector. Assumes mix of early-stage and aged accounts.
- High-touch/complex: 100-200 accounts per collector. Construction, large enterprise customers.
- High-volume/transactional: 400-600 accounts per collector. Smaller balances, simpler disputes.
These are starting points. Adjust based on your actual touch rates and results.
Don't just count accounts—weight them by complexity and value. A collector with 200 accounts averaging $50K each has a very different job than one with 400 accounts averaging $5K each.
Hiring: What to Look For
Great collectors share certain traits that can be hard to assess in traditional interviews. Here's what actually predicts success:
Persistence Without Aggression
The best collectors are relentless about follow-up but never damage relationships. They find ways to be persistent while remaining professional. Look for examples of how they handled difficult situations without escalating emotionally.
Problem-Solving Orientation
Collections isn't just about asking for money—it's about understanding why payment hasn't happened and finding solutions. Look for candidates who naturally ask "why" and propose solutions rather than just reporting problems.
Attention to Detail
Missing a promise-to-pay date, confusing two customers, or sending an email with wrong information destroys credibility. Test for detail orientation with practical exercises during the interview.
Communication Skills
Can they explain complex situations clearly? Can they adjust their communication style for different audiences? Have them walk through a scenario where they'd need to explain a billing issue to a frustrated customer.
Training: What Actually Works
Most collection training focuses on scripts and procedures. That's necessary but not sufficient. Effective training develops judgment, not just process compliance.
Onboarding Structure (First 90 Days)
Week 1-2: Foundation
Systems training, company/industry context, shadow experienced collectors. No independent customer contact yet.
Week 3-4: Guided Practice
Handle low-complexity accounts with close supervision. Daily review of all communications and outcomes.
Month 2: Building Independence
Expand to moderate-complexity accounts. Weekly coaching sessions. Begin tracking individual metrics.
Month 3: Full Portfolio
Full account assignment. Bi-weekly coaching. Clear performance expectations with support for improvement.
Ongoing Development
Training shouldn't stop after onboarding. High-performing teams invest in continuous skill development:
- Call reviews: Regular listening sessions where the team reviews actual calls and discusses what worked and what didn't. Focus on learning, not criticism.
- Case studies: Monthly review of difficult accounts—how they were handled, what was learned, what could be done differently.
- Industry knowledge: Help collectors understand customer industries so they can have more informed conversations and spot warning signs.
- Cross-training: Rotate through different account types or functions to build versatility and prevent burnout.
Performance Management
How you measure and reward collectors shapes their behavior. Get this wrong and you'll drive the wrong outcomes—even with talented people.
Balanced Metrics
Don't rely on a single metric. Collectors will optimize for whatever you measure, so measure multiple things:
Recommended Performance Metrics
Compensation Design
Collection compensation typically includes base salary plus variable compensation tied to performance. Common structures:
Conservative (Lower Risk)
80% base / 20% variable
Good for relationship-focused B2B where you want collectors focused on customer retention alongside collection.
Aggressive (Higher Upside)
60% base / 40% variable
Good for high-volume environments where you want to reward top performers significantly more than average performers.
Whatever structure you choose, make sure the targets are achievable but meaningful. Targets that everyone hits don't motivate; targets that no one hits demoralize.
Common Mistakes to Avoid
Key Takeaways
- Choose a team structure that matches your AR complexity and volume
- Right-size workloads—200-400 accounts per collector is typical for B2B
- Hire for persistence, problem-solving, and communication—not just experience
- Invest in ongoing training, not just onboarding
- Measure multiple metrics to drive balanced behavior