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Debt collection sucks for all parties involved: For debtors, receiving hassling\u00a0phone calls and letters in the mail can be demoralizing, especially if they feel they are unable to pay. For debt collectors, letters and calls can\u00a0go ignored, reducing their ability to\u00a0get repaid.<\/p>\n
To solve both those problems, a\u00a0startup called\u00a0Collectly<\/a>\u00a0is\u00a0moving the process\u00a0online and providing more transparency around how debt collection\u00a0is going. By doing so, the company is recovering debt at twice the\u00a0rate of traditional collection agencies.<\/p>\n Collectly was founded by\u00a0Levon Brutyan, who was managing director of a collections agency in Europe before setting out to reshape the industry with technology. He teamed up with machine learning expert\u00a0Max\u00a0Mizotin, who built the\u00a0platform.<\/p>\n According to\u00a0Brutyan, the way debt collection works today is that agencies send letters to debtors who owe money. If they don\u2019t hear back, they send another\u00a0letter. And if that doesn\u2019t work, agents start making calls to debtors. If none of that works, they wait a few weeks and start the cycle all over again.<\/p>\n The longer a bill remains in arrears, the less likely it will be repaid. Collectly attempts to shorten those cycles by tracking and learning about a debtor through\u00a0each interaction.\u00a0The platform integrates with most\u00a0major accounting software, allowing\u00a0users to select which accounts it should follow up on.<\/p>\n Collectly\u00a0identifies the best way to contact debtors and tracks when they open and respond emails, providing more transparency to those who are seeking repayment. With a personalized communication strategy for each person they reach out to, Collectly can also provide debtors with appropriately structured repayment solutions if they can\u2019t pay the whole amount owed.<\/p>\n Also, by better identifying which debts\u00a0are most likely to be repaid, Collectly can focus on higher-value targets. But even in\u00a0those cases where money isn\u2019t likely to be recovered, the platform\u00a0provides a much faster and easier process for\u00a0its clients than traditional collections agencies.<\/p>\n To start, Collectly is focused on debt collection in the medical industry, and has a success rate of 56 percent with early customers. But the company believes its system can scale to other verticals in the future.<\/p>\n","protected":false},"excerpt":{"rendered":"![\"\"](\"https:\/\/tctechcrunch2011.files.wordpress.com\/2017\/03\/y-combinator-907-1.jpg?w=680\")
A startup called Collectly is moving the debt collection process online and providing more transparency around how the process is going. By doing so, the company is recovering debt at twice the rate of traditional collection agencies. Read More<\/a><\/p>\n\n<\/img><\/a>
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