Top 21 Collection Specialist Interview Questions In 2022 [With Answers]

Credit sales of goods and services often form an integral part of every business. Companies engage in acceptable terms with their customers/debtors so as to stimulate sales and achieve their revenue targets. These goods or services sold on credit have a high potential of turning into bad debt, due to complete or partial non-collection of the money. Thus, in order to achieve its recovery targets and ensure that all its debtors pay in time, a collection specialist is usually hired. Read all the interview questions related to this profession from hereunder:

Collection Specialist Interview Questions

21 Best Interview Questions To Study

1. What Do You Understand By The Term Debtor Management and What Is Its Relevance?

This question tests your knowledge and understanding of your core knowledge of debt recovery and collections.

Sample Answer

Sir, it is common for business organizations to sell goods and services on a credit basis to their customers, which in turn become the debtors of the company. It is necessary to realize the dues from these debtors within the stipulated or mutually decided time so that the company does not face a liquidity crunch and is able to utilize its working capital judiciously.

2. How Will You Handle A Customer Who Is Deliberately Delaying Payment Despite Having Funds.

This question tests your practical working knowledge.

Sample Answer

Sir, such customers are usually categorized into the “stubborn” category. These are sticky and need a lot of persuasive efforts. I always try to negotiate with them and try to reach an agreement. As a collection specialist, you need to have patience while dealing with these customers, and preferably try to win their confidence by practicing tactics of empathy and affinity.

3. Effective Communication Plays An Integral Role In This Job Profile. Rate Your Communication Skills On A Scale Of One To Five.

This is an assessment-based question that checks how much faith do you have in your ability to communicate.

Sample Answer

Yes sir, I completely agree with this statement. Without effective communication, it will be very tough to gain success in this job profile. Thus, I have completed an advanced communication course in linguistics, to bolster my skillset. I would like to rate myself with a 4.8

4. While Making Collections An Organizaton Must Follow An Accomodating Stance. Comment On This Statement.

This question tests your knowledge and understanding of the various strategies adopted by companies to recover the debt.

Sample Answer

Sir, there are various stances that a company can assume while making its debt collections. I completely agree with this statement. This is because it might be true that in an accommodating stance a company will not be able to recover 100% of its debt and might ultimately settle at 80-95% but this creates goodwill for the company in the market and all the losses sustained due to a lower collection are offset by the higher level of sales. An aggressive approach might lead to near-perfect recovery but will spoil the brand image of the company.

5. What Are The Various Documents That A Collection Specialist Must Execute While Undertaking Recovery Procedures?

This question tests your understanding of the various documents involved in your profession.

Sample Answer

Sir, In my humble opinion, there are typically three major documents/instruments that are used by the collection specialists, which are:

  1. A negotiated contract between the company and the debtor, containing all the relevant terms and conditions
  2. A series of post-dated negotiable instruments, preferably a cheque, in case the debtor opts to pay in parts
  3. An agreement that binds the debtor of its liability to re-pay and compensate the company for all the legal damages and documentation charges

6. How Will You Achieve Your Recovery Targets, Without Coercion and Intimidation?

This question tests your practical working knowledge of the various tasks to be performed in your profession.

Sample Answer

Sir, I am not a follower of harassment or coercion while making recovery of the debt. I have always believed in settlement and always follow a logical sequence in which I am able to make some sensible conversation with the defaulting party. Whatever the recovery targets are given to me, I try my best to achieve those, by entering into acceptable terms with the defaulters. This usually happens with persuasion and negotiations.

7. Name The Best Debt Management Software That Are Widely Used In The Industry.

Technology is an important part of every industry and there are various software that are used in debt management as well. You must be aware of them as you can be enquired for the same.

Sample Answer

Sure, sir, These are:

  1. Latitude by Genesys
  2. Zuora
  3. ezyCollect

8. Assume That The Sales Department Has Sent You A Set Of Financial Statements. From Where Can You See The Items Of Your Relevance.

It is common for the collection specialists to browse and read the financial statements of the company. This question tests your basic understanding of these statements.

Sample Answer

Sir, I would first of all check the sales of the company from the Income statement. Post that, I would browse the balance sheet of the company and would check the level of debtors. Then, I will demand a separate sheet of debtors that will have all the details, such as the amount due, the last date for making payment, etc.

9. Explain The Relevance Of Bargaining and Negotiation While Making Debt Collection.

This question tests your practical knowledge and understanding of the various procedures used in your profession.

Sample Answer

Sir, it is an established fact that you can not recover money using wrongful tactics. You need to be patient and must adjust with the debtors by remodeling their payment structure and terms. In order to achieve a payment term, which is acceptable to both parties it is necessary to engage in effective negotiation and bargaining. This process holds a lot of relevance, as failed negotiations usually lead to legal roads, which are long, terrible, and expensive.

10. Dreams Are What Separate Us From The Others. What Is Your Dream Job?

It is true that we all dream, and might wish to work alongside our idols. But, through this question, an interviewer wants to know what are the various expectations and benefits that you want your employer to offer you. For example, you might dream to work in a business organization that offers you a four-day workweek. Be professional and state the demands that are realistic and acceptable.

11. Our Organization Has Created Its Legacy By Providing Quality Services. How Do You Interpret The Term “Quality”?

This is a word-based interview question, through which an interviewer wants to know your version of interpretation of the term “quality”. We all are different and react differently towards various situations faced by us. Hence, always share an original answer and try to avoid all the generic ones. Moreover, quality is usually achieved when:

  • An organization is able to achieve customer satisfaction and
  • All the established benchmarks and standards are met

12. How Do You Prefer To Work – Team or Individually?

This is a tricky interview question, which requires you to choose between the two options. No matter what you choose, you will always be doubted and questioned about your selection. This is because, if you opt for “team” then you will be assumed as a person who is not able to work under minimum supervision and guidance. On the flip side, if you choose “individually” then you are a person who is not able to maintain a good rapport with your team members. As an ideal response, go with “team” and state the benefits of teamwork.

13. What Are Your Strengths and Weaknesses?

This is a common interview question and is asked in almost all the interview sessions held across the world. Through this question, an interviewer judges your personality, behavior, and approach, which ultimately helps him in deciding whether or not you will be a perfect match for the company’s culture. Share a perfect answer by analyzing your personality, and offering some excellent logic.

14. As A Collection Specialist You Will Bargain, Communicate and Negotiate A Lot. This Can Lead To Buildup Of Stress. How Do You Manage Your Stress Levels?

Stress is a common mess that impacts almost all corporate employees. Not only does the daily routine crush in its monotony but also the office politics impacts the well-being of the employees. This leads to a buildup of stress that affects the normal functioning of the employees. Hence, an interviewer is always interested in understanding the various techniques and strategies using which you can manage your stress levels.

15. What Makes You Special and Unique From Other Candidates?

This is a tricky question, which might disturb your concentration and make you feel either superior to others or give you some inferiority complex. Thus, first of all, you need to have a balanced state of mind while delivering an answer to this question. Next, you can always prepare your answer from the job description issued to you by your employer. Note down the major requirements of the job and prepare for them.

16. You Will Not Always Achieve Your Recovery Targets. This Is A Failure, Which You Must Handle Using Appropriate Strategies. Can You Share These With Us?

Failure at workplaces is common. Not every employee can be successful in his or her workplace at all times. Failure will certainly strike you at some point and can disturb your mental stability and confidence level. Thus, an interviewer wants to know the strategies and techniques that you adopt to manage your work-related failures. A positive pep talk, meditation, counseling, are some of the common ways to manage your failures.

17. Why You Chose To Work With Us?

We all employees apply to various business organizations simultaneously to improve our chances of selection. It is an established fact, that not all the companies are our favorites, rather these are ordered from the first to last. Thus, an interviewer through this question, checks about your seriousness and commitment towards the business organization. Prepare a perfect answer by browsing the official website of the company and noting down all the relevant facts and details.

18. Being A Collection Specialist, You Will Be Performing Multiple Tasks In A Business Day. How Do You Prioritize?

It is common for business organizations to assign several business tasks to their employees that need to be executed in a single working day. These tasks must be ordered and ranked on the basis of a pre-defined strategy and prioritization technique. Usually, employees prefer to arrange their tasks on the basis of the difficulty level of the tasks or time consumption. You are free to share your own strategy, but make sure you are explaining it using a real experience.

19. If You Were An Animal, What Will You Be?

This might be an easy question for the amateurs, but a veteran knows the worth of it. This question is a master personality evaluator that needs you to perform extra efforts so as to give a perfect reply. As an ideal response, you can always choose any one of the corporate-friendly animals, such as dolphins, honey bees, bald eagles, elephants, dogs, etc., and align their positive characteristic with the requirements of the job. For example, you can choose an elephant, as it has a sharp memory and is friendly in nature. This will certainly go well with your job profile as a collection specialist.

20. What Are Your Salary Expectations?

This is a non-technical interview question, which has the ability to reduce your selection chances. As an ideal response, never share any salary figure that is either too high or too low from the mean salary. Give a serious effort in researching the industry to which you belong and note down the salaries offered to similar professionals performing similar roles.

21. Do You Have Any Questions For Us?

Whenever you face this interview question, be assured that your opportunity has ended and now you can certainly go home after this. This question gives you the last chance to prove your mettle as it marks the end of your big day. Thus, always attempt this interview question and ask a few relevant counter-questions from your interviewer. Readout these model questions below for a better understanding:

Model Questions

  • What are the growth prospects of working in the company?
  • Please share a list of all the anti-harassment policies that are incorporated by the company at the workplace.
  • What are the incentives and allowances that are offered by the company to its employees?

Download the list of questions in .PDF format, to practice with them later, or to use them on your interview template (for Collection Specialist interviews):

Screenshot 2022 09 15 151656

References

  1. https://www.ingentaconnect.com/content/wk/acm/2020/00000096/00000008/art00042
  2. https://www.jmir.org/2021/7/e24278/
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