Outsourcing Collections and Tracing

When to Call in the Specialists

In the highly technical and regulated world of the collections industry, the question isn’t just about if you can recover a debt, but how efficiently you can do it without eroding your brand or draining your internal resources and staying within the law. As we move through 2026, the complexity of debt recovery has shifted. It’s no longer just about making phone calls; it’s about navigating a landscape of tightening regulations, sophisticated debtor-tracing technology, and the delicate balance of "Consumer Duty”.

For many firms, the internal credit control department is the heart of the business. However, even the most robust in-house teams eventually hit a ceiling. Here is how to know when to maintain the status quo and when it’s time to call in the specialists at Towerhall Solutions.

The Current Landscape: By the Numbers

The economic climate of 2025 and early 2026 has created an even greater pressure on cash flow. Consider these sobering statistics:

• Rising Insolvencies: Personal insolvencies increased by 7% in 2025, reaching over 126,000 cases in England and Wales alone.
• The Cash Flow Gap: Roughly 82% of small businesses fail due to improper cash flow management, often stemming from uncollected B2B invoices.
• Efficiency Gains: Industry data shows that AI-integrated specialist agencies can possibly boost recovery rates by 15–25% while cutting operational unit costs by up to 90% compared to traditional manual methods.
• The Cost of Waiting: Debts older than 90 days become significantly harder to recover; professional intervention at the 60-day mark increases the probability of payment by nearly 40%.

When In-House Makes Sense

Keeping your collections in-house is often the right move for early-stage arrears (1–30 days). At this stage, the relationship is still warm. Your team knows the customer’s history and can offer a gentle nudge that feels like a standard customer service interaction.

Benefits include:

• Direct Brand Control: You maintain 100% oversight of the "tone of voice."
• Immediate Data Access: No lag time in transferring files to a third party.
• Cost Neutrality: For small volumes, a lean internal team can be cost-effective.

The "Specialist" Tipping Point: When to Outsource

There comes a moment where "trying harder" internally yields diminishing returns. If you recognise these three red flags, it’s time to consider a call to Towerhall.

1. The "Ghosting" Phenomenon

When a debtor, tenant or client stops responding to emails and calls, an in-house team is usually stuck. This is where specialist Debtor Tracing often can become essential. At Towerhall, we use exclusive industry databases and investigative expertise to locate debtors who have moved or are more often than not actively avoiding contact, achieving a 85% success rate across over 250,000 cases.

2. Regulatory Overload

The regulatory environment (such as FCA standards and the "Consumer Duty" principle) is more rigorous than ever. Keeping an in-house team fully compliant requires constant, expensive training. Specialists such as ourselves are "compliant by design." Outsourcing shifts the burden of regulatory risk to experts whose systems are already built to meet these high-security and ethical standards.

3. Different approaches for different channels - an Omnichannel approach

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In 2026, the "one-size-fits-all" approach of repeated phone calls is no longer effective. Debtors now expect choice, and data shows that utilising a variety of channels significantly increases the "nudge factor." By meeting customers where they are most comfortable, we reduce friction and improve engagement.

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Why Multi-Channel Matters:

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• The 3:1 Digital Preference: Modern debtors now prefer digital channels (SMS and Email) over traditional mail by a ratio of 3 to 1.
• Breaking the "Ghosting" Cycle: If a debtor ignores a phone call, they may still engage with a low-pressure SMS or a personalized email. Agencies using an integrated approach see up to a 25% increase in collection success compared to single-channel methods.

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4. Scaling Hurdles

If your business experiences a seasonal surge or rapid growth, hiring and training new collectors can take 3–6 months. An outsourced partner provides instant scalability. Whether you have ten cases or ten thousand, a specialist firm can absorb the volume without you having to worry about office space or payroll taxes.

The Towerhall Advantage: Precision Over Pressure

In 2026, the "aggressive debt collector" is a relic of the past. 

Today’s recovery is about Intelligent Case Handling. We combine:

• Human Empathy: Our field agents are trained to protect your reputation while delivering results.
• Digital Infrastructure: Real-time intelligence and verified data ensure we aren’t chasing dead ends.
• Legal Support: From process serving to asset recovery, we provide an end-to-end solution that an in-house team simply cannot replicate.

What you need to know

The choice between in-house and outsourcing isn't "all or nothing." Many successful firms use a hybrid model: keeping early-stage credit control internal and escalating "broken promises" or "untraceable debtors" to specialists.

Ready to see what a 85% success rate looks like for your balance sheet?

• Contact Towerhall Solutions Today – Let’s discuss a tailored recovery strategy for your portfolio.
• Request a Free Debt Recovery Audit – Discover where your in-house process might be leaking revenue.
• Explore Our Specialist Services – From Debtor Tracing to Field Visits, see how we can help you re-engage.

We’d love to chat over a cuppa or online meet, show you our unique approach and of course some relevant case studies. Please contact Glenn Matthews today.

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