Liquidation Curve

Knowing the liquidation curve is crucial to effectively managing an agency. Here’s a short refresher on how to calculate it:

1. Start with your month-batch report (aka step-down, 12 by 12, and others) – this report will tell you the liquidation of each month’s placements over the past twelve months.
2. Create a graph with Months on the x-axis and Recovery % on the y-axis and plot the point for each month.
3. Connect the dots; the result is your liquidation curve.

Generally, it will rise sharply for the first 2 or 3 months, before leveling and then slowly dropping off. You can use this curve to determine when to return accounts, whether you’re applying resources early enough, and the lift you’re getting from reporting to credit bureaus, receiving info from skip vendors, or other stages in your workflow.