In-House Recovery vs. Third-Party Agency

Building a recovery function internally is a real option. It is also a fixed cost that has to be fed with volume. ## Fixed Cost vs. Variable Cost An internal recovery team means trucks, insurance, storage, licensing, training, and payroll that continue whether or not this month produced assignments. That structure can make sense for a lender with steady, concentrated volume in one metro. A third-party agency converts all of that into a per-recovery cost with statewide reach, night and weekend capacity, skip tracing, and multiple asset classes already covered. Most portfolios end up somewhere in the middle: internal handling of cooperative accounts, an agency for everything that requires field work. Run your own numbers against these before committing either way. ## Four Factors That Decide It Monthly assignments to justify fixed cost One metro or the whole state Who carries the field liability ## A Hybrid Model That Works Equipment needed for each class Your team owns borrower contact, payment arrangements, and voluntary surrenders. Licensed agents handle location work, recovery, transport, and storage. Compare recovery rate and cycle time so the split stays justified by results. **Key Points:** - Capacity available without hiring - Insurance and licensing carried by the vendor - Coverage beyond your home metro - Equipment for autos through heavy units **Topics Covered:** - Volume - Geography - Risk - Asset Mix - Keep Collections Internal - Outsource the Field - Review Quarterly ## About PRG Asset Recovery & Holdings LLC **Company:** PRG Asset Recovery & Holdings LLC **Phone:** (210) 745-0964 **Email:** repos@theprg.org **Service Area:** San Antonio, Austin, and throughout Texas **Licensing:** Texas licensed, bonded, and insured recovery agency **Website:** https://prgassetrecovery.com/in-house-recovery-vs-third-party-agency