The recovery rate of an agency is basically the pulse and key indicator of how well they are performing. With this said there are variables you may not think about at first that directly affect that number. From industry, to age of receivable, or debtor’s financial standings at time of placement. These all come into play when analyzing agencies percentages.
For example during the housing collapse in 2008 the industry saw a direct correlation with the building and material supply sector. The amount of placements rose but the recovery rate dropped as well. Due to the economic climate and contractors cash flow issues bills we not being paid and suppliers were feeling the effects. This is when time of placement is key. Getting the bills over to us and escalation done quicker leads to high recovery and you not left out in the dark.