Everyday Blog

Although the new coalition government is now in place it is still too early to know if companies, large and small will be given any help. The new government has given positive signs such as a proposal to tackle the debt mountain and reconsideration of the tax system. However the economic situation has remained with us and so most companies are feeling the effects, which might well have ended in a reluctance to pay invoices as promptly as before. This can have a devastating effect on small companies who need to keep their revenue going to stay afloat. The small company in this case will no doubt get in touch with the large company to get to know what is going on and the result of this might well decide the next step for the small company. If the response is not as hoped such as stalling tactics being used then the small company might feel that it is being used as a free credit resource and not as a wortwhile business associate. This might well lead them to look at Debt Collection, especially lawyers or Debt Collection Agencies, since these are viewed as the most normal of Debt Collection services, however if the small company is losing money then they might well find these services rather out of their league. It is not uncommon to find that both lawyers and Debt Collection Agencies charge around 10% to 20% of the invoice value as their fee and for a small company this sort of loss can seem excessive.

The small company might want to look at some Debt Collection Software packages, as a Debt Collection solution they can use themselves. One important effect of the economic situation is the increase in the number of both lawyers offering Debt Collection services and Debt Collection Agencies, and while the lawyers might well be ethical as they are regulated by the Law Society, Debt Collection Agencies, although regulated might well come and go as the Debt Collection market ebbs and flows. The bottom line here is that there might well be a few Debt Collection Agencies that would simply use the small company and might charge excessive fees or use borderline legal methods of recovering the debt. This latter aspect might well harm the commercial relationship between the small and large companies and make it problematic for the small company to bring in trade in the future.

The use of Debt Collection Software will permit the small company to keep control of the dealings with the large company and hopefully retain their commercial relationship. By using Debt Collection Software they will have to assign the resources internally to make the Debt Collection project work. They will need to assign people to both work on the Debt Collection Software package and also to create Debt Collection letters, which are at the crux of the Debt Collection operation. These Debt Collection letters provide the main communications between the two companies during the Debt Collection operation and so must be written with care. The people appointed to his aspect should have a good command of English so that there are no spelling or grammatical issues in the Debt Collection letters that are sent out.

The Debt Collection Software should have a instructions that can provide training for the people in the small company, both to explain how the Debt Collection operation works and also how to create convincing Debt Collection letters. The instructions should give useful ideas for inclusion in the Debt Collection letters such as current laws that can be referenced and also clever phrases that Debt Collection Agencies use, in this way the large company should be persuaded to pay the invoice.