Banks and other companies go to great lengths to capture market share when they offer credit. They debate for months about whether to appeal to their customers’ vanity or frugality, whether to market by Internet or telephone, or whether a pink credit card might prove more popular than a purple one. But when companies try to get their money back from those who neglect to repay, many suddenly forget their marketing savvy.

All too often collections are an afterthought. The organizational structure of one Asian bank places collections on a par with the office responsible for mailing out monthly statements. At another bank an executive confided that collections appeared to be an “elephant graveyard” where unwanted employees were sent to await retirement.

Yet collecting overdue payments is an integral part of banking and of any business offering credit or payments over time, including retailers, hospitals, utilities, and telephone companies. It poses a particular challenge in emerging markets, where customer information is often scarce and legal systems may well be inadequate. The best companies see collections as a profit opportunity, and talented people can use it to make substantial contributions to the bottom line.

In our experience there is considerable room...