Recovery rate (inddrivelsesgrad)
Also known as recovery rate, collection rate, success rate, inddrivelsesgrad, løsningsgrad, succesrate
The recovery rate is the share of the claims handed over that is actually paid.
Key facts
- Measures
- Paid claims as a % of those handed over
In practice
The recovery rate is the figure you ought to ask any collection provider about — but it has to be read with care. A high recovery rate may just as easily mean that the provider turns away the difficult cases as that they are good at the job.
The figure that matters is the recovery rate set against the age of the cases at hand-over. Claims handed over after 40 days are recovered in an entirely different league from claims handed over after a year. It is rarely the collection agency that makes the difference — it is when the agency gets the case.
Where it commonly goes wrong
- Providers are compared on the recovery rate alone. Without case age and debtor type, the figure says nothing.
- You measure closed cases instead of cases handed over. The ones that never went anywhere quietly drop out of the figure.
- The number ignores how old the claims were at handover. A claim handed over after 120 days is recovered less often — that is not the agency’s doing.