Small Companies Are Not Being Helped By The Banks So How Can They Get A Large Business To Pay An Overdue Bill Economically?

There have been many instances recently of small organisations that have requested financial help from finance houses, often where they have done business with for years and have either been rejected or have had unreasonable terms imposed. Some finance houses, such as the ones that were saved by the last government are claiming to have lent millions to small organisations, but others could have, but at larger interest rates. When a small enterprise is waiting for a large enterprise to settle an account, sent in for projects completed or products delivered, is left waiting for settlement, beyond the agreed final settlement date, their first action would be to call up the large enterprise to learn what is happening to their account and when it will be settled. If they do not receive a reasonable reply and they need to have the account settled quickly then they could feel that their best choice is to assess Debt Collection proceedings. Their initial investigation could well bring up the typical Debt Collection providers such as solicitors and Debt Collection Agencies and these could provide a good Debt Collection service, using Fair Debt Collection Practices that should ensure that any business relationship that the small enterprise has developed will be saved. However, the poor financial climate has brought about a rise in the numbers of Debt Collection Agencies and solicitors that are experienced in business Debt Collection services. The problem being that these newer Debt Collection Agencies and solicitors could not want to keep to Fair Debt Collection Practice, and so could well harm the business relationship, as well as possibly making high charges.

As an alternative to solicitors and Debt Collection Agencies, the small enterprise could uncover Debt Collection software and consider this, since they can then take on the Debt Collection operation themselves and try and preserve the business relationship, once they find out about Fair Debt Collection Practice, that is. There is a cost advantage, since a decent Debt Collection software system can cost around £40, while Debt Collection Agencies and solicitors charge from 10% to 20% or more of the account value. Furthermore the Debt Collection software can be used time and time again for any future Debt Collection operations at no extra cost, but the solicitors and Debt Collection Agencies will levy their costs every time.

Of course the small enterprise will have to allocate resources to both manage the Debt Collection software and also to write the Debt Collection letters, as they don’t have the teams of professional people that the solicitors and Debt Collection Agencies have to call on. These people in the small enterprise will need coaching in how the Debt Collection operation works in general and more specifically how to write Debt Collection letters, where the people assigned for this will need a good grasp of English so that errors in the Debt Collection letters can be avoided. They will all need to understand the Fair Debt Collection Practice so that they can carry the Debt Collection operation through to a successful close, collecting the majority of their account settlement and preserving their business relationship. By abiding by the Fair Debt Collection Practice they will also have completed the Debt Collection operation for a much better price than by using solicitors or Debt Collection Agencies.