As credit conditions remain tight, collections activity continues to be a focus area for factoring and specialty finance firms. At the same time, expectations around conduct, consistency, and oversight have increased.
Collections are inherently sensitive. Poorly executed outreach can damage customer relationships, create reputational risk, and invite scrutiny. Conversely, overly passive approaches can weaken cash flow and portfolio performance. The challenge lies in finding the right balance.
In 2026, that balance is increasingly shaped by structure and governance.
Industry best practices emphasize the importance of documented communication standards, approved scripts, and clear escalation paths. Consistency matters—not only in what is communicated, but in how frequently and through which channels. Firms are also paying closer attention to training and monitoring, recognizing that collections interactions directly reflect brand values.
Oversight is another critical component. Whether collections activities are handled internally or externally, organizations are expected to maintain visibility into performance and conduct. Reporting that tracks outcomes, exceptions, and trends supports informed decision-making and demonstrates control.
Customer experience plays a role as well. In a competitive environment, preserving long-term relationships can be just as important as short-term recovery. Professional, respectful engagement supports both objectives.
Across the industry, collections are increasingly viewed as an extension of overall risk management rather than a standalone function. Firms that approach collections with the same discipline applied to underwriting or verification are better positioned to protect both cash flow and reputation.