Netback Analysis
Netback Analysis: The best statistic to use when considering an Agency
- Net Back is defined as the amount of money that is returned to the Client after the agency takes its fee.
- Netback reflects true cash recovery to compare performance of multiple partners regardless of the differences in dollars placed and fee rates.
- Vendor selection is often heavily based on the lowest fee.
- The fee rate charged is not nearly as important as the services needed to recover your money.
- Lower fees do not maximize your revenue and often delivers less money to the bottom line as shown in the chart below.
| NETBACK ANALYSIS | Agency A (NCS) | Agency B | Agency C |
|---|---|---|---|
| $ Placed | $1,000,000 | $1,000,000 | $1,000,000 |
| $ Recovered | $155,000 | $138,000 | $127,000 |
| Recovery % | 15.5% | 13.8% | 12.7% |
| Fee rate paid | 25% | 22% | 20% |
| Commissions paid | $38,750 | $30,360 | $25,400 |
| Netback $ Remitted back to you | $116,250 | $107,640 | $101,600 |
| NETBACK ANALYSIS | Agency A (NCS) | Agency B | Agency C |
|---|---|---|---|
| $ Placed | $1,000,000 | $1,000,000 | $1,000,000 |
| $ Recovered | $155,000 | $138,000 | $127,000 |
| Recovery % | 15.5% | 13.8% | 12.7% |
| Fee rate paid | 25% | 22% | 20% |
| Commissions paid | $38,750 | $30,360 | $25,400 |
| Netback $ Remitted back to you | $116,250 | $107,640 | $101,600 |
Higher Netback = A More Profitable Bottom Line
Factors to consider on Agencies that offer lower rates
- Do they ignore low balance, time consuming , or less desirable claims?
- Do they raise the dollar amount threshold to provide for skip tracing, letter efforts and call campaigns?
- Do they place trainees on your accounts?
- Do they have high account-to-collector ratios?
- Do they provide dedicated recovery teams?
None of these actions benefit the client and we commit that they will not occur at NCS!
You can rely on NCS’ expertise, tenacity, and experience in working your claims. We will leave no stone unturned; and we will investigate all skip tracing databases needed to locate people and their assets.
Upon contact, we work with debtors to determine all possible payment options. NCS consistently recovers more revenue and outperforms competition to deliver best-in-class results!
Years in Business
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Millions Recovered for our clients!
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Claims received exceeding $3 billion dollars
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