The market of debt recovery firms is becoming increasingly competitive; at the same time the amount of claims, sold mainly by banks and telecommunication companies, is growing. The awareness of debtors is also rising, which forces debt recovery firms to appraise claims and predict their recovery time with improved accuracy.

We have many years of experience in analyzing debt recovery processes in dedicated firms as well as in other lines of business, for example in the telecommunications sector.

We offer complex analytical support, including claim appraisal, collection scoring, assessment of a debtor's tendency to repay the debt, optimization of debt recovery processes and data quality analysis.

Claim appraisal

Professionally conducted appraisal of claims guarantees that they will be acquired with greater chance of financial success. StatConsulting builds analytical models which facilitate claim appraisal. These models are based on the prediction of the recovered amount (discounted on the day of the analysis) depending on the recovery time (Survival Analysis).

To perform claim appraisal we use information about the debtor, including earlier debt recovery history.

We construct claim appraisal models for various claim portfolios, including telecommunications and banking portfolios.

Our solutions provide the means to:

• credibly appraise the claims,
• purchase claims at a price which increases the possibility of profit,
• precisely plan the income from debt recovery in time.

Estimating the debtor's tendency to repay the debt

The decision about the purchase of claims can be made on the basis of the debtors' tendency to repay their debts. It is especially justified in the case when sufficient historical debt recovery data is not available. StatConsulting builds models for estimating the debtor's tendency to repay the debt for various types of claims.

Scoring models for evaluating the debtors' tendency to repay the debt support the process of claim appraisal and provide assistance in:

• purchasing claims characterized by lower risk of financial loss,
• planning the income from debt recovery.

Optimization of debt recovery process

Optimal planning of the debt recovery process results in:

• shorter time from claim transfer to recovery,
• lower total costs,
• an increase of the amount of recovered claims,

We have many years of experience in analyzing debt recovery processes in dedicated firms as well as in other lines of business, for example in the telecommunications sector. We can asses the debtor's credibility thanks to the realization of scoring models for banks. This experience complements our knowledge and provides us with a broader perspective on the problem of debt recovery.

The benefits of using our solutions are:

• diversification of recovery paths for different types of claims,
• choosing the optimal recovery path with respect to the time and cost of recovery.

Data quality analysis

Claim appraisal, the assessment of debtor's tendency to repay the debt, and the optimization of the recovery process rely on information which is often obtained from multiple sources. This information can be incoherent and stored in different, incompatible formats. For instance the following kinds of data can be obtained:

• demographic data about the debtors,
• information about the recovery process before and after the transfer of claims (in consequence, data may contain errors, it may be incorrectly interpreted, or be incompatible with other sources of information, etc.).

StatConsulting offers data quality analysis and data cleansing services for the purposes of debt recovery procedures.