The collection officer's main duty is to accumulate recovery payment dues on bills and hefty loans taken by clients. A candidate generally needs a minimum of high school credentials or equivalent for collections specialists, although a university education is usually preferred.
A candidate can strengthen his/her resume and build a robust foundation with courses in communication, accounting, and pc skills. They are employed through agencies and collections companies to tell clients about their past due payments and try to acquire charges to mitigate organization losses.
It has been said that between 2018 and 2028, the profession is predicted to grow -8% and produce -19,400 task possibilities throughout the U.S.
| Industry | Financial Sector |
| Eligibility | A minimum degree of Bachelors in Accounts/ Commerce or equivalent from a recognized board. |
| Average Starting Salary | 2,00,000-2,50,000 LPA |
| Job Security | Moderate |
- What does a Collection Officer do
- How to Become a Collection Officer: Step to Follow
- Types of Collection Officer
3.1 Credit Manager
3.2 Accounts Receivable Manager
3.4 Healthcare Agent
4.1 How to Become a Collection Officer after 12th
5.2 Master of Business Administration
6.1 United Kingdom
6.2 United States
6.3 Australia
6.4 Canada
- Benefits of Career as a Collection Officer
- How to Become a Collection Officer: Skills Required
- Salary of a Collection Officer
9.3 Experience Wise
What does a Collection Officer do?
A collection officer's job is to timely remind the customers to pay their payment dues or loans. They maintain good relations with customers, informing them about new schemes and maintenance of their profile.
- They make payment plans for the client's convenience. The payment plans help the client to choose one plan with which they are comfortable and is affordable to them. Establish reimbursement plans to clear up superb obligations.
- Compile and examine records had to gather antisocial debts and provoke criminal complaints on enforcement actions.
- They make monthly reports on all delinquent accounts that were prepared and delivered to the supervisor.
- They assist loan borrowers with their financial situation and payment options.
- They maintain a collection portfolio of consumer loans, including mortgages, vehicle loans, credit card balances, and other types of debt.
- They consult with the customer to ascertain the cause of late payments and to make arrangements for debt payback or payback schedules.
- They assist Collections Team managers with the preparation and generation of invoices/credit notes, sales ledger management processes, debt collection, and income-related activities, as needed.
How To Become Collection Officer: Steps To Follow
There are procedures to follow to become a Collection Officer, below are the mentioned steps which are to be followed:
- Make a Plan: Make a strategic thorough plan about your career. Start from the beginning, try to rattle your brain to know what you like about this profession, understanding the market criteria and needs for this profession, your area of interest, and courses available or required to become a collection Officer.
- Choice of Subject: Although there is no specified subject required to pursue collection Officer, a Bachelor's degree in Accounts/ Commerce from any UGC recognized University can provide an edge to the candidate. The candidate must possess skills in Finance. The right choice of subject will help you to guide you through the journey of becoming a Collection Officer.
- Prepare for the Entrance Exam: For any area of job, it is mandatory to know that particular job. It should be proper research and understanding.
- Admission to College: Choosing a better college for your enrichment in learning is important. A college that provides good education, training, facility, infrastructure, packed with learned faculty and internships is better.
-
After Qualifying Exam: If a college has an entrance exam, one has to sit for it and after clearing it, there are Group Discussion and Personal Interview.
After qualifying the Group Discussion and Personal Interview. A merit list is published and according to that, candidates are invited for document verification on the day of their admission.
Types of Collection Officer
Money is needed by everyone for personal or business purposes hence loans will be taken by people and as money is taken, it should be returned to the organization as well within a stipulated period given to the customer. The Collection Officer acts as a connection between the customer and repayment of loans. There are many levels or types of collection officer such as
Collection/ Credit Manager
The Credit Manager, who is responsible for maximizing sales numbers and lowering possible bad debts, is a less well-known but no less crucial function for businesses. A Credit Manager, like a collection agent, is responsible for monitoring the payment of dues and taking necessary action with consumers if they do not pay.
The corporation will request the Credit Department's approval before closing a large sale. It has grown over the last 20 years as a result of the need for improved management and a wider range of national and international clientele. The Credit Manager may have legal responsibilities as well, such as contributing to the drafting of terms of sale to ensure payments or conducting risk verification analyses on consumers. They can also help the sales cycle run smoothly.
Accounts Receivable Manager
This position's primary tasks include tracking invoices, dealing with late payments, and supervising Accounts Receivable Clerks. Our ideal candidate is well-versed in all accounting procedures and capable of overseeing daily financial transactions from beginning to end.
Credit Controller
A Credit Controller's responsibilities include ensuring that client accounts are collected in a way that ensures high customer satisfaction and loyalty. As a result, while reporting to the Financial Controller, a Credit Controller must be able to engage with customers and the broader accounts receivable staff in an efficient yet polite manner. Developing systems and policies that ensure on-time payments while retaining a high degree of client loyalty.
The job of the Credit controller includes Complex accounts that have been escalated from the AR team and must be reconciled, debtor balances are being monitored to verify that debtor DSO is being reduced, ensuring that the team follows credit and collection policies, and procedures. Customers, as well as the sales team, must be contacted.
Retail Collection Agents
Consumer debts owing to retail companies are collected by retail collection agents. The debt collection agency buys a discounted claim to the debt from a retailer and then attempts to collect the full sum directly from the customer. Retail collection agents collect about any form of retail debt imaginable, from cable television bills to outstanding credit card bills.
Health Care Credit Collection Agent
Consumer debts owing to retail companies are collected by retail collection agents. The debt collection agency buys a discounted claim to the debt from a retailer and then attempts to collect the full sum directly from the customer. Retail collection agents collect about any form of retail debt imaginable, from cable television bills to outstanding credit card bills.
How to Become Collection Officer in India?
One might not think about becoming or turning their career into becoming a Collection Officer from the beginning. It is not one of those lucrative fields for the students to see their future in it. In India, where Fields like Engineering or Doctorate, or Law get most of the limelight, it's difficult to deviate from the given scope and build one's career as Collection Officer. As it has been mentioned, a particular degree is not required to excel in this field, hence it becomes open for all to make their career in this area. Though at some workplaces, Bachelors in accounts or MBA is desired.
How To Become Collection Officer After 12th?
After making up one's mind at the school level, a student can go up for higher education without hesitation for getting into the field of Collection Officer. Following the completion of 10 + 2, a candidate can go for any of the respective streams to be successful as a Collection Officer.
Post-school qualification, students have the option of taking either bachelor's degree/ certificate/ diploma course in Accounting or Finance/ crash course. A bachelor's degree is of three years, whereas other courses are ranging in between the period of 1-2 years.
The next step after finishing UG is Post graduation in the same subject or relevant subject. It is one step up from the UG. For pursuing UG, one has to check the criteria required by the colleges/universities you want to take admission in. Then fill in the application form and proceed with the further procedure such as an entrance exam/ group discussion/ PI. After clearing all the rounds, you are selected to take admission.
Courses to Become Collection Officer
Bachelor of Commerce
B.com is a full-time three-year-long undergraduate course. You can take up B.com with a specialization in Accounting and Finance. Accountancy is a way of expressing business and financial information. It is one of the ways through which the company implements to keep track of its expenses as well as earnings.
Admission Process
In some colleges, the students are selected based on their 10+2 scores and they conduct their entrance exam to check the merit of the student. It is important for students to get grades in their +2 and entrance exams as well.
- Select the college you want to take admission to.
- Check the criteria required and the date of application form availability.
- The college will roll out a preliminary set of merit list based on grades of 10+2
-
After that, many colleges might conduct their own entrance exam/GD/PI. If not, then admission is taken after document verification.
See: BCom Admission 2023
Entrance Examination
There is no such one unanimous exam conducted by all the colleges. They have different timelines and patterns of examination and admission procedures.
B.Com Eligibility
- Candidates must secure at least 55% from a recognized board in 10+2.
-
Candidates must belong from the Commerce stream.
Master of Business Administration
M.B.A is a short form of Masters in Business Administration. It is a full-time program of two years. It is the most popular program in India and overseas, with thousands of students enrolling in MBA programs each year. The MBA course curriculum provides students with the abilities they need to excel in a variety of related professions such as management, economics, and commerce, as well as in the corporate sector as a whole.
Admission Process
All over India, the Entrance Examination is used to determine admission to the M.B.A. program. A candidate must have taken at least one of the CAT, MAT, CMAT, or ATMA exams. Steps to be followed to take admission in M.B.A.
See: MBA Admission 2023
- First and foremost, choose the college you are looking forward to taking admission to.
- Keep checking the college websites for the publication of application forms and fill them in.
- Prepare yourself for GD and/PI.
- A merit list will be published based on your performance.
- The candidates who are selected shall be eligible to take admission after document verification.
M.B.A Eligibility
- A Bachelor’s degree in any discipline, with an aggregate marks of 50% or an equivalent CGPA score from any recognized University / College
- A relaxation of 5% is granted to students who are from the SC/ ST/ PWD background.
-
Final year candidates are also eligible for applying for the course, however their admission will be subject to changes depending on their final results.
How To Become Collection Officer Abroad?
As it has been mentioned earlier, a bachelor's degree in commerce/ accounting or MBA could help in the progression in the field of Collection Officer in India, whereas in Abroad, one who has bachelor's in Commerce / Economics/ Accounting. Economics is an additional course in Abroad which is accepted to become a Collection Officer.
United Kingdom
One could apply for any course in the UK. In the UK, if one fails to meet the criteria for one subject, they can always try their luck in others and get their way out. The UK offers varied courses for the students to get themselves enrolled in.
The UK recognizes either IELTS or PTE tests for acceptance into colleges in the UK. You can take these tests from your hometown and seek admission. Your score has to range between 5.5-6.
13 years of Schooling in your own country or UK, or an international foundation year, along with an IELTS score.
Many colleges provide the course in B.Com/M.B.A/ Economics. The colleges are listed below
| College Name | Fees (INR) |
|---|---|
| University of Oxford | 13,59,260 |
| University of Surrey | 11,95,200 |
| University of Warrick | 16,02,720 |
| London School of Economics and Political Science | 14,34,240 |
| University College London | 13,37,760 |
United States
There are many colleges in the USA for Commerce/ Management which can help you get in the job of Collection Officer. Commerce/Management courses give an insight into financial strategies and money management at work. In the USA, SAT or ACT or IELTS needs to be qualified to take admission in the US.
At least securing 70% from a recognized board in 10 + 2 along with IELTS/TOEFL/ PTE score.
For MBA, Graduation from a recognized university. 3 years of Work Experience. TOEFL/IELTS/GMAT is applicable.
In the UK, the best colleges for the following courses are mentioned below:
| College Name | Fees (INR) |
|---|---|
| University of California | 13,82,600 |
| Stanford University | 13,32,500 |
| MIT | 36,57,000 |
| Harvard University | 35,54,730 |
| Ohio University | 12,36,300 |
| University of Michigan | 17,08,900 |
Australia
In Australia, scores of IELTS/GMAT scorecards are mandatory to take admission in any of the courses provided by Australia.
The candidate should have completed a secondary school qualification and secured 70% in school level 10+2.
IELTS/TOEFL/PTE/Advanced CAE/EAP/GMAT tests should be taken and not more than 2 years before the commencement of your session.
There are innumerous colleges in Australia providing courses in the respective courses are
| College Name | Fees (INR) |
|---|---|
| University of Sydney | 3,58,37,511 |
| Victoria University | 32,00,000 |
| Torrens University | 32,78,880 |
| University of Melbourne | 1,26,00,000 |
| Deakin University | 60,69,174 |
Canada
In Canada, admissions are granted based on IELTS/TOEFL scores.
Completion of School Academic Years with good grades from a recognized board which will be equivalent to Canadian Board.
Colleges in Canada that provides respective courses are
| College Name | Fees (INR) |
|---|---|
| University of Toronto | 82,10,880 |
| University of Alberta | 60,62,700 |
| University of Windsor | 16,48,200 |
| University of Waterloo | 30,08,300 |
Benefits of Career as Collection Officer
Salary
In India, a Collection Officer earns an average of INR 501,721 per year and INR 241 per hour. A Collection Officer's typical income ranges from INR 367,982 to INR 626,607. In India, the average salary for a collection officer is 14,028/month.
The base pay starts from 11,000 and ranges up to 28,0000. They have additional perks of bonuses and Incentives. The average annual compensation for a Collections Officer in Australia is between $55,000 and $65,000.
Job Security
The competition is high in the particular job field as no entry-level specific qualification is required. It doesn't come with a lot of Job security but one can get oneself skilled and stand out in the crowd with years of experience.
Positive Impact of the Career
Anyone can get into this field from any respective field. As a collection Officer, you can earn a lot in a short period with dedication. There are opportunities in receiving promotions and incentives to show the appraisal in work done. In this job, you are given rigorous training about negotiation with clients, knowing about clients, Debt collection laws and regulations, debt management, and other policies. In different states and countries, a collection officer is paid differently as per their skills and experience. They can earn a lot within a short time.
Unique Experience
A collection Officer comes up with a different schedule and pay-off policies to make it advantageous and easier for clients to make payments for their debt. As we all know loans are taken when there is a crisis or need of money and later paying it off becomes difficult for people to pay on time. It puts people under lots of stress. The collection officer must build a trustworthy relationship with clients and help people to get rid of all the loans and debt on time. Few Clients who are rigid and don't pay off, the collection officer negotiates their best with the clients.
Skills Required for Collection Officer
The required skills for this job are:
- Working knowledge of MS Office and databases
- Patience and ability to manage stress
- Knowledge of the laws governing debt collection
- Problem-solving skills
- Communication skills
- Data entry
- Team Player
- Logical Thinking
- Knowledge of mathematics as a collection officer deals with money and finance
- Can work with Targets
- Skillful in Negotiation
Salary of Collection Officer in India
Based on 5 salaries, an entry-level Collections Officer with less than 1 year of experience can expect to make an average total compensation of INR 192,000 (including tips, bonus, and overtime pay).
Based on 75 salaries, an early career Collections Officer with 1-4 years of experience gets an average total salary of INR 220,378. With 5-9 years of experience, a mid-career Collections Officer gets an average salary of 2,46,517. An extreme experienced Collection Officer with 10-11 years of experience gets an average salary of 3,00,266
Average Annual Salary
| Name Of Organization | Annual Average Salary |
|---|---|
| Govt. | - |
| Private | 1,50,000- 2,50,000 |
Specialization Wise
| Specialization | Salary |
|---|---|
| Collection/ Credit Manager | 4,63,874 |
| Accounts Receivable Manager | 6,71,376 |
| Credit Controller | 4,34,973 |
| Retail Collection Agents | 1,68,156 |
| Health Credit Collection Agent | 1,97,309 |
Experience Wise
Experience adds extra quality in every job aspect for every individual. An experienced person is given more preference for serious tasks than a fresher.
A fresher is new in his/her field and needs to be trained or learned to know the tricks of the job but an experienced one is already aware of how to do the particular job and excel on it. Hence an experienced one is paid more than a fresher.
| Experience | Salary |
|---|---|
| Fresher | 1,50,000 |
| Experienced | 3,00,000 |
Future Prospects after Collection Officer
There are many other career prospects after the post of collection officer. To increase one’s worth, one can always pursue higher education to rise on the ladder of prosperity.
Higher Education
There is no minimum eligibility to pursue the job of collection officer but a degree in B.com is enough for anyone to join in. One can move forward to pursue MBA/M.Com to learn more about finance and have a boost in career.
Start Job
A collection officer with experience and time can earn enough without any huge degrees or experience. After working as a collection officer for years, one can work as a Manager in Banks, Or big private firms as a Finance Advisor.
How to Become Collection Officer: FAQs
Ques: What is the debt recovery Procedure?
Ans-
- Give payment reminders to the customer.
- Contact for overdue payments
- If a customer fails the due date, provide them a final notice for the due repayment.
- Try to contact the customer if they do not respond to the final notice.
- If the customer still fails, send a letter of demand formally to retrieve the money back.
Ques: Is a collection officer a stressful job?
Ans- Yes, it can be a stressful job as here one is dealing with sensitive and intimate details of people's loans, businesses, and property. Often you have to go through disturbing stories and events of a customer's life. Some Customers behave properly and some are rude and misbehave.
Ques: Is debt collection a profitable job?
Ans- A collection Officer or Debt Collector earns when he/she can collect a certain amount of debt. The more they can collect, the more they will earn. Old debt is stagnant for a longer period, if the debt collector can fetch those payments, then it's more profitable.
Ques: What a debt collector or bill collector can't do while calling customers?
Ans-
- Use of offensive Language
- Providing incorrect amount of debt
- Harassing Customers
- Threatening unnecessarily
- Sharing customers debt information to others
Ques: What are the ways by which a collection officer can collect payments from his customer?
Ans-
- Direct contact with the customer
- Filing a lawsuit against a defaulter
- Taking custody of property
Ques: What are the tools required to know for easy delivery of the task as a collection Officer?
Ans- Point of Sale (POS) software, Microsoft programs(Word, Excel), and Accounting Software (Enterprise One, Quickbooks)
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