Subjective Factors
These are qualitative items that cannot be measured with a number , but are just as important as the objective factors in evaluating an Agency ’ s performance .
These are feel good items that measure your comfort level with the Agency , and if you are not comfortable with the objective factors regardless of how good they are , the Agency may not be sufficient for you to want to continue to do business with them .
What Subjective Factors Are Important ?
• How they treat your accounts is critical . How does the Agency represent your brand ? If they are too aggressive they may be making it impossible for you to ever do business with a customer again . Every once in a while an account may suffer a business downturn , so you don ’ t want to let an infrequent problem eliminate your chance of ever doing business with the customer again . And you certainly do not want to hear from the account ’ s lawyer that your Agency may be in violation of fair collection practices .
• Is this a professional outfit ? If you do not feel you are being treated with respect , you may have a problem . The Agency needs to respond promptly to your emails or telephone calls . If you need some particular service , do they provide it without a hassle ?
• Is the Agency easy to do business with ? Are they flexible and do they have the ability to meet your needs , no matter what those needs are ? Working with an Agency many times is the last thing on your mind , but as you need them to manage a portion of your debtors are they easy to
‘‘ The review of your Agency ’ s performance is both objective and subjective . If you place business with your partners , both areas really need to be evaluated and should be on a consistent basis . While write-offs at most companies are insignificant , although expected , every shilling your Agency returns to you puts cash back to the bottom line . This further promotes the fact that the credit department can be more of a profit center , than just a cost unit .’’
work with ?
• Do you like doing business with them ? Do you like the people at the Agency ? After all , collections is a “ people business ” and personal relationships are very important as they allow for far better communication and it ’ s easier to work with somebody y ou like than somebody you don ’ t . The chances of an Agency meeting your needs are far better if the parties get along than if they do not .
• Can they provide you with professional advice that can improve your in-house operations ? An Agency should be able to give you an independent evaluation of your internal operations . While making you more efficient may cost them some short-term cash flow , it should guarantee your relationship for the long-term .
• Can you utilize advice from your Agency and their alliances to assist in your daily routines ? Can you maximize your relationship and obtain information provided to protect your company from unexpected loses ?
As you can see , the review of your Agency ’ s performance is both objective and subjective .
If you place business with your partners , both areas really need to be evaluated and should be on a consistent basis .
While write-offs at most companies are insignificant , although expected , every shilling your Agency returns to you puts cash back to the bottom line .
This further promotes the fact that the credit department can be more of a profit center , than just a cost unit .
The above notwithstanding do not miss out on services of collection agencies just because of your rigid and unprofessional way of evaluation . This should provide you with an insight of how professional evaluation ought to be done .
Wasilwa Miriongi is a certif ied Credit Professional currently working as the Managing Director , Del Creder Credit Management Limited . You can engage him on this or related matters via email at : WMiriongi @ gmail . com .