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When a small organisation has had many contracts for a variety of larger enterprises and has never had any outstanding settlement of their bills, it may come as a shock if one of the large enterprises has let their latest invoice go over the agreed payment date without paying it. After such a long dedicated working time with larger enterprises, the small organisation is sure to have nurtured a good professional relationship with them all and would not wish to damage this by not talking to the large organisation concerned first to get their side of the story. They will hope for a positive outcome and soon see the invoice payment arrive, but if this is far from the truth and the small organisation thinks that they are not hearing all of the information they need to then they may be of the opinion that they are being used. They may then see that their only chance of getting the invoice paid is by Debt Collection proceedings.

As this is the first outstanding invoice payment for the small organisation, their experience of Debt Collection processes is probably very limited and their initial searches may well bring up the traditional Debt Collection services of solicitors and Debt Collection Agencies. However the financial downturn has seen an increase in the numbers of Debt Collection Agencies and solicitors offering commercial Debt Collection services, but the small organisation needs to be mindful that not all of the new ones may be as ethical as established solicitors and Debt Collection Agencies. This can affect the small organisation in two man ways; firstly the debt unethical collection agencies or solicitors may use bad Debt Collection methods that could tarnish the hard won professional reputation and secondly the fees may not be apparent initially and so could rise alarmingly as the Debt Collection process continues. It may be very difficult for the small organisation to distinguish between good and bad solicitors and Debt Collection Agencies and so the risks may not be worth taking.

The other Debt Collection method is Debt Collection Software whereby the small organisation takes on the Debt Collection project with their own resources. This has financial benefits but on the other hand the small organisation has to provide their own resources to administer the Debt Collection Software. The financial benefits come from the fees for solicitors and Debt Collection Agencies being in the range of 10% to 20% or more of the invoice value, and the cost for a decent Debt Collection Software suite being around the £40 mark.

The small organisation will have to work hard to get the best out of the Debt Collection Software suite since they will need to learn about the Debt Collection process, which needs to be included in the user guide that comes with the Debt Collection Software suite. The user guide needs to also illustrate the role that Debt Collection letters play and needs to also provide details of pertinent legislation and also any phrases that Debt Collection Agencies use. It needs to be stressed that those people nominated to compose the Debt Collection letters need to have a good command of English since any spelling or grammatical issues can upset the Debt Collection process. So with dedication the small organisation should be able to get the large organisation to settle the outstanding invoice and at a much more advantageous price that solicitors and Debt Collection Agencies. Furthermore the Debt Collection Software is a purchased item and so it can be brought into use for any future debts at no extra cost, whereas solicitors and Debt Collection Agencies will charge their fees for every debt they take on.

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Tags: debt, debt advice, debt collection, finance, finances