Is There Any Hope For A Small Enterprise With A Weakened Cash Position Caused By The Recession, Which Is Chasing An Overdue Bill With A Large Enterprise?

It is such an unfortunate state of affairs when the financial downturn, caused by reckless finance houses, has caused unrest for many small and large businesses alike in messing up the cash flow and finance houses lending facilities so that businesses can feel isolated when in need of financial aid. To be in this position and have an outstanding account with a large company which probably are able to pay it but seem reticent, a small company might well need help fast, but at a cost they can handle. If the small company has discovered that the large company is not in such serious financial problems that receivership is looking them in the face, but is just waiting for its own bills to be paid first, it might feel as though it is being used as a free credit facility.

Their next tactic might well be to start Debt Collection proceedings, with the most cost effective strategy being Debt Collection Software. However this means that the small company will have to do all of the work with their own resources, still for a spend of some £40 to £100 it must be worth the effort. Typical Debt Collection services such as solicitors or Debt Collection businesses might well charge fees of around 10% or more of the account value and that could be without extra expenses or VAT being added on. What is more they will charge per account collected, whereas Debt Collection Software is a pay once use many times choice for Debt Collection.

The small company will have to be interested and dedicated when using Debt Collection Software for although they might pick a system with a good documentation set or training guide, this must be worked through and understood. The personnel designated to work on the Debt Collection Software and to create the Debt Collection Letters will need to be computer literate and also have a good command of English. The position of the Debt Collection Letters cannot be taken trivially since they constitute the heart of the Debt Collection procedure and make up a formal request for payment from the small to the large company. These Debt Collection Letters will need to be composed in unemotional and professional terms, referring to current Acts of Parliament as required, such as the “Late Payment of Commercial Debts (Interest) Act 2002” which was set up to not only give a small company tools to recover the debts but also persuade the larger company to pay future debts on time. The act allows the small company to apply a one off charge as compensation for Debt Collection work undertaken so far and is an amount between £40 and £100 and is regulated by the value of the debt. Daily interest can also be applied at a rate of 8% over the Bank of England base rate.

The Debt Collection Software training modules should also recommend phrases to use in the Debt Collection Letters, such as those used by Debt Collection businesses as these can be another spur to persuade the large company that it is better to pay the account now than later. So, with a small purchase price and lots of dedication the small company should be able to use Debt Collection Software to recover the account payment.

If you enjoyed this post, make sure you subscribe to my RSS feed!