Unless You Go Digital and Only Pay for Results, They Are
Let’s be blunt: if you’re still trying to work low-balance accounts manually, you’re not running a business – you’re making a charitable contribution to your clients. Between contingency rate compression, rising costs of everything, and the need to fully service low-dollar placements, most collectors are losing money. Many of you are stuck between making a profit and your duty to serve your clients. The real problem? Unit yield.
The Cold, Hard Math
Unit Yield = Average Balance × Contingency Rate × Recovery Rate
Here’s what that looks like in the wild:
- Average Balance: $150
- Contingency Rate: 20%
- Recovery Rate: 15%
That gives you a unit yield of $4.50.
Can you afford to burn human capital on a $4.50 payout? Not unless you like writing off your margins.
The Industry’s Worst-Kept Secret
Plenty of agencies are still assigning live agents to accounts that can’t possibly break even – all in the name of “coverage.” But the truth is, when labor costs rise and account balances drop, that math stops working. Even if you are trying to limit human involvement to just incoming phone calls, a five minute conversation could cost $2.50 or more. That’s one right party contact.
And while you’re busy burning money, other vendors are offering “digital solutions” that charge you by the task – not the result.
- Email sent? That’s a charge.
- SMS attempt? That’s another.
- Minimums, guarantees, and set ups? That’s a cost.
- Systems integration delays and actual fees? You get the point.
You pay them for activity – even when there’s zero recovery. That’s not innovation, and certainly not the sort of additional headwinds you face at a time like this.
Avtal Does It Differently: No Payment, No Fee
At Avtal, we flipped the script.
We don’t charge you for busy work or digital smoke and mirrors.
We take a fee only when there’s a payment.
That’s it. Simple. Aligned. Scalable.
Here’s what that means:
- No agent costs eating up your low-yield placements
- No task-based charges draining your budget for non-payers
- No risk of burning cash on “engagement” that doesn’t convert
Just recovery, digitally delivered, and a fee only when it works.
Unit Yield Rewritten
With Avtal’s performance-based digital model, that $4.50 unit yield can now be generated without assigning a single agent, making even sub-$200 accounts profitable again.
The best part? You don’t have to guess or gamble on outcomes. You only pay for success.
The Choice Is Clear
In this buyer’s market, you have little pricing power. You can’t raise rates. You can’t work harder. You can let someone deliver, optimize and maintain compliant digital engagement for you.
Avtal helps you do that by:
- Digitizing low-balance engagement
- Eliminating agent overhead, freeing them up to engage on high value accounts
- Aligning fees with performance – not effort
If you’re tired of watching your P&L bleed out from accounts that should’ve been profitable, it’s time to take a hard look at who’s helping you – and how they get paid.
Let’s Talk Results
You don’t need more tools. You need better outcomes.
If you’re ready to stop paying for activity and start paying for results, Avtal is ready to help.
