Strengths, weakness opportunities, threats …are a part of any business organization. To study these carefully and make an analysis leads to the success of a business.
For a collection agency SWOT analysis not only of its own company but that of the debtor and creditor also gets important for understanding and dealing in collection of payment.
This however may not be easy or practical but a study will be an asset for the collection agency. Strengths and weakness relate to internal factors while opportunities and threats mirror the external.
Strengths – financial repayment financial fitness
Weakness- delays and excuses poor monitoring
Opportunities –future business flexibility/technology up-gradation
Threats – changing options non repayment
(p.s. listed above are just pointers and not a comprehensive list).
A collection agency ,with its strength of trained manpower needs to investigate and do the SWOT analysis before committing and working on behalf of the creditor. It needs to be assured that its commissions too are paid promptly for the services rendered.
And the advantage of knowing about the debtor enables the collection agency to be discriminative in accepting a deal or not.
Besides ,going through the contractual terms and ,understanding the initial discussions ,between the creditor and debtor becomes a part of the collection agency’s agenda. It is possible a collection agency’s services maybe hired on a desperate note but the solidity of the agency lies in its decision making.
A collection agency can definitely thrive with the right SWOT analysis.