Lesson 8 of 8

Running collections: costs, write-off, provisions and the numbers to watch

Collections is an operation with its own costs and results, and what it achieves flows straight into the accounts through provisions and write-offs. This lesson explains how to measure what collecting costs and returns, how arrears turn into provisions under expected-loss accounting, when a loan is written off and what happens to recoveries after that, the ratios that link losses to the book, and the numbers a lender should watch every month.

Published 17 October 2026