If the small firm has been completing projects or delivering goods to the larger firm for some time, perhaps years, the likelihood of a late completion now and again might be fairly good, after all we all make mistakes don’t we? However in the current financial downturn, the small firm might need settlements on time from all clients and hope that some of them will pay before time. If the invoice to the larger firm is of a high value, even in just small firm terms, say a few thousand pounds perhaps, then this might have a notable effect on their cash flow, after all they will have their own bills to pay on time and the overdue invoice could make the difference between survival and collapse. If the business relationship has been built up over years then the last thing the small firm will want is to throw all that away by going straight for Debt Collection methods, such as a lawyer or Debt Collection businesses, where strong Debt collection letters might get sent out.
The small firm should contact the larger firm to try and get to know what has happened. The pro here is that it might turn out to be a mistake which could be fixed quickly and it also helps to keep the business relationship. The possible con is that if the larger firm is having cash flow problems then they might play for time instead of being open and try and make the small firm wait longer that they should.
If the small firm finds that they are not going to get the invoice paid then they might well look into Debt Collection procedures. There are two what might be described as conventional procedures; a lawyer, or Debt Collection businesses, which specialise in commercial Debt Collection. The pros here are that they should bring expertise in generating good Debt collection letters and also have the employees and the time to devote to the Debt Collection activity. They might well have a sample demand letter as an example of their past work. The cons are largely the cost of that expertise, employees and time, where charges of around 10% and more are normal, and if a court appearance is recommended then the charges can rise even higher. One more con is that these charges are due for any future debts they handle. There is a third path, that of Debt collection software which will allow the small firm to with their available resources. The pros here are cost since Debt collection software packages can start from under £100 and once up and running it can be set up for any future Debt Collection. The cons are that the small firm will have to make resources available themselves , such as employees to operate the Debt collection software and generate the Debt collection letters, a printer to print off the Debt collection letters, although this might be an existing office printer, and finally a new PC might be required. Provided the small firm selects wisely and buys a Debt collection software package that provides a good a set of instructions, which explains the Debt Collection activity in detail and also how to generate convincing Debt collection letters, relevant to each stage of the Debt Collection activity. The provision of examples for these Debt collection letters would help the employees to generate effective Debt collection letters of their own that should prompt the larger firm to pay the invoice, especially if they find more Debt collection letters arriving, sent as part of a structured Debt Collection plan.
Filed under Debt Free by on Sep 6th, 2010. Comment. 
This is a tricky one in that the USA Administration seems to be ignoring the claims from BP that the USA enterprises that did the initial drilling and fitted the well head should also be held responsible for the oil leak disaster. This leaves BP as being seen as the only organisation responsible, so any other enterprises that BP had employed for other parts of this project might well be losing out in some way. By far the biggest losers might be the shareholders, of which pension funds form the biggest grouping and depend on the dividends to keep their funds going. As for small enterprises which have completed contracts or supplied items for any of the other, larger enterprises on the project, it seems not right if any of them are left with outstanding accounts. For any small organisation that is left with an outstanding account beyond the agreed settlement date their best move might well be to speak with the large organisation concerned to learn when it will be paid. If they don’t get a positive result and the large organisation doesn’t seem like it is going into administration, their best bet might well be to look into Debt Collection to get the account paid.
The small organisation might not want to dedicate any time on the Debt Collection project and so might simply pass it on to one of the traditional Debt Collection services; solicitors or Debt Collection Agencies. However if the small organisation wants to save money and has time, then they might be better checking up on taking on the Debt Collection project in-house by using Debt Collection Software. The cost difference between solicitors and Debt Collection Agencies, and Debt Collection Software can be large, depending on the account value, since solicitors and Debt Collection Agencies charge around 10% to 20% or more of the account value. Debt Collection Software can be bought for around £40 for a decent package, but of course it does demand enthusiasm and resources from the small organisation to make Debt Collection Software work.
The small organisation will need to provide resources of time and employees if they are to make efficient use of the Debt Collection Software, but the employees will not be effective if they don’t know what they are doing. When checking up on the Debt Collection Software packages, the small organisation should look at the documentation to see how good the guidance section is. They will need to be guidance on both the Debt Collection process itself and then the role played by Debt Collection letters. There should be guidance on appropriate laws and also any useful snippets that Debt Collection Agencies use. The employees selected to generate the Debt Collection letters should have a good understanding of English so that there are no spelling or grammatical problems in the Debt Collection letters or this could have a detrimental effect on the Debt Collection process, as well as possibly harming the working relationship between the two enterprises.
However with adequate guidance and dedication the small organisation should be able to use the Debt Collection Software package to persuade the large organisation to pay the account, at a cheaper fee than solicitors and Debt Collection Agencies charge.
Filed under Debt Free by on Sep 4th, 2010. Comment.
It is such a sad state of affairs when the financial situation, caused by reckless banks, has caused trouble for many small and large firms alike in messing up the cash flow and banks lending facilities so that firms can feel isolated when in need of financial help. To be in this position and have a late account with a large business which probably are able to pay it but seem unwilling, a small business might well need help fast, but at a cost they can manage. If the small business has ascertained that the large business is not in such serious financial straits that receivership is on the horizon, but is just holding back for its own invoices to be paid first, it might feel as though it is being used as a free credit service.
Their next tactic might well be to start Debt Collection proceedings, with the most cost effective method being Debt Collection Software. However this means that the small business will have to do all of the work with their own resources, still for an outlay of some £40 to £100 it must be worth the effort. Normal Debt Collection services such as solicitors or Debt Collection firm might well charge fees of around 10% or more of the account value and that could be without additional expenses or VAT being added on. What is more they will charge per account recovered, whereas Debt Collection Software is a pay once use many times option for Debt Collection.
The small business will have to be interested and dedicated when working with Debt Collection Software for although they might pick a application with a good set of instructions or training guide, this has to be examined carefully and understood. The people selected to work on the Debt Collection Software and to generate the Debt Collection Letters will need to be computer literate and also have a good command of English. The status of the Debt Collection Letters cannot be stressed too much since they constitute the focal point of the Debt Collection process and make up a formal request for payment from the small to the large business. These Debt Collection Letters will need to be created in unemotional and professional terms, referring to appropriate legislation as required, such as the “Late Payment of Commercial Debts (Interest) Act 2002” which was set up to not only give a small business leverage to recover the debts but also convince the larger business to pay future debts on time. The act allows the small business to make a one off charge as recompense for Debt Collection work performed so far and is a figure between £40 and £100 and is governed by the value of the debt. Daily interest can also be charged at a rate of 8% over the Bank of England base rate.
The Debt Collection Software tutorials should also provide phrases to use in the Debt Collection Letters, such as those used by Debt Collection firm as these can be an additional spur to convince the large business that it is better to pay the account now than later. So, with a small outlay and lots of hard work the small business should be able to use Debt Collection Software to recover the account payment.
Filed under Debt Free by on Aug 26th, 2010. Comment.
Debt collection may not be the first thing that a small enterprise may give some thought to when a large enterprise, which they have worked with many times, has left the most recent invoice unsettled past the agreed final date. Their main thought may be to contact the large enterprise and ascertain what has happened, in the hope that it is just a simple oversight that can be sorted out quickly. In this economic downturn, the large enterprise may itself be waiting for settlement on overdue bills of its own and so may be suffering cash flow problems. If this is the case then depending on the cash flow situation of the small enterprise they may take a supportive stance and allow more time for the large enterprise to pay the invoice. However, if the contract contains late payment paragraphs then the small enterprise may feel warranted to invoke these, especially if their cash flow situation is not too healthy.
If the small enterprise needs to invoke Debt collection methods, then they need to take into consideration the cost against the various paths, where a solicitor who is experienced in Debt collection, as well as a Debt collection firm are very likely to base their charge on a percentage of the debt and this may work out as a large amount in comparison to a more economical path of Debt collection. Debt collection software can be purchased for less than £100 and can provide much guidance on how to compose good Debt collection letters, taking into account the legislation in place at the time of release. It will be for the small enterprise to take into consideration the effect of a contract however. Debt collection letters form the heart of the Debt collection activity and the Debt collection software should provide not only information but also samples that cover each level of the Debt collection activity. In this way the small enterprise has a starting point when composing their own Debt collection letters and so should be able to alter them to relate to the large enterprise and the debt involved.
The person or workers from the small enterprise who get notified to run with the Debt collection software will want to have a good command of English and the ability, when composing Debt collection letters, to refrain from emotional language as this may well put the small enterprise in a bad light with the large enterprise and disrupt the Debt collection activity. It may be better for the small enterprise to have more than one person notified to the Debt collection software in case of holidays, sickness or any other absence in this way they will be able to take on any future debts at any time. Also this may improve the quality of Debt collection letters as they should be checked before being distributed, since any careless mistakes could be as damaging as emotional language.
So, for a price of some £100 or less, a small enterprise can have the tools to compose Debt collection letters and the benefit is that once obtained, they can use the Debt collection software for future Debt collection with minimal extra outlay.
Filed under Debt Free by on Aug 24th, 2010. Comment.
In the current troublesome financial environment the late settlement of accounts from one firm to another might be more frequent, but for the small businesses that are owed cash by the larger businesses, the small firm might well be put in a difficult position. On the one hand they need the invoices to be paid, but they also have to retain a good relationship with the larger firm, especially if the small firm has had many contracts or provided equipment on many occasions to the same larger firm, they want this flow of work to continue. The small firm might think that their only next step is to try and find a traditional Debt collection solution to this difficulty, such as a solicitor who specialises in Debt collection or a Debt collection organisation. Both of these should be able to write convincing Debt collection letters that might convince the larger firm to settle the invoice, but there could be a danger of them looking at this approach as rather abrupt, rather than asking the larger firm for their side of things first. This might make the larger firm think twice before selecting that small firm for equipment or services that it wants in the future. This might damage the good name of the small firm in the business area that it trades in and so they might lose further orders by having the direct approach taken on their behalf.
The best way to handle the unpaid invoice would be for the small firm to hold off the Debt collection process and to get in touch with the larger firm and find out their side of the situation, they might have internal problems that have caused problems with their invoicing process or they might also be waiting for payments from even larger businesses that have disrupted their usual cash flow pattern. By communicating in this way it shows the larger firm that the small firm is considerate as well as ethical and professional in its business dealings, rather than simply pursuing a Debt collection path right away. However it might be that the larger firm has put forward a problem scenario, but might in fact be simply trying to gain as much interest on its cash and wait till the last minute to settle outstanding accounts. This is just like treating the small businesses as free credit agencies, and if it were made known it could damage the good name of the larger firm. However it is likely that the small firm has to go along with the larger firms point of view, but the small firm might well need to have a reserve plan, in this instance it might be best to evaluate Debt collection software that can provide enough of guidance on generating Debt collection letters and also information on how the Debt collection process works so that they are able to confidently know when it is best to send out the Debt collection letters. The Debt collection software needs to have the functionality to record key events on the Debt collection process such as when Debt collection letters are posted, when documents, emails or payments are received and when phone calls are made and received. Such calls my also need to be recorded if possible or otherwise typed up and stored as electronic documents in the Debt collection software database. This database is essential if the small firm finds that the Debt collection letters have not had the desired result and now they are considering taking the larger firm to court. The court will need to see evidence that the small firm has made serious efforts in the Debt collection process before they will allow the case to be heard.
Filed under Debt Free by on Aug 17th, 2010. Comment.
When a small company has submitted their bill for projects done or goods supplied to a larger company and then realise that it has not been settled after the agreed final payment date, they could wonder if there is anything in the legal system that can assist them. For business debts such as this, there is the “Late Payment of Commercial Debts (Interest) Act 2002”, which details single payments and daily interest that the small company is allowed to charge on the outstanding debt. This act is only applied when the contract, agreed between both firms, does not include a late payment paragraph, if it does, then the act cannot be applied as well. The small company has the option of making the charges or not however the large company cannot opt out of the late payment act.
If the small company needs to keep working or supplying goods to the large company then before making any charges they should tell the large company what they are proposing to do. In addition it is better to send a revised bill showing the charges being made so that it is clear what is being charged for. If applying[/spin] the act does not prompt payment by the large company then the small company could see it as appropriate to launch Debt collection proceedings. This can be done by several ways; a Debt collection business, which specialises in commercial Debt collection, or a lawyer with similar experience, or even to buy of a Debt collection software package and keep the Debt collection procedure internal.
Performing the Debt collection procedure internally can not only save cash, but also enable the small company to control the Debt collection procedure. To permit them to do this effectively the Debt collection software should provide a set of instructions which explains the Debt collection procedure in detail and most importantly, how to generate convincing Debt collection letters. The small company will also need to provide enough resources if this route is to work and so competent employees should be chosen, perhaps two or more so that there is support in the event or holidays, sickness or other absence. Computer experience would be a very useful requirement and also a good standard of English in order to generate good quality Debt collection letters. The Debt collection software should be able to pull the user along the Debt collection procedure and show them how to generate Debt collection letters correct for different steps of the procedure. A good way of doing this would be to supply a suite of samples of Debt collection letters so that the user has a starting point from which they can customise the real Debt collection letters to suit the large company details, which will be essential if the Debt collection letters are to be taken seriously.
A really good benefit of Debt collection software is that once installed it can be reused for any debts that come up in the future and the small company only has to pay for printer consumables, stationery and postal costs. It the small company was to use a lawyer or Debt collection business then they could well be required to pay 10% or more of the debt for the service, but this would be required for any future debts as well, so making these rather expensive options.
Filed under Debt Free by on Aug 14th, 2010. Comment.
In the current financial climate and with financial institutions still being reluctant to offer money to small businesses, a small business awaiting payment for work completed oritems supplied may think twice before dealing with legal practices or Debt Collection companies, especially if these have been used in the past. While legal practices and Debt Collection companies which specialise in commercial Debt Collection may offer a high quality service, this does come at a estimated price of some 8% to 10% of the debt, plus expenses and further charges if the case goes to court.
But just suppose the small business had access to the techniques used by Debt Collection companies and could compose good quality Debt Collection Letters all for a single one-off cost of under £100, would they be wise to ignore it? They would be able to do this with Debt Collection Software and provided they pick out carefully the small business may well have become equipped with the equipment to handle future Debt Collection at very little extra cost. Of course, the small business will have to allocate resources in order to take on the Debt Collection in-house which may be a problem, especially if the business is staffed with just the right number of members of staff. However it is hopeful that there will typically be one or two outstanding payers and so the time required to devote to Debt Collection should be minimal and may be absorbed into one or more members of staff existing workload. Compare this against the charges for each and every debt that legal practices and Debt Collection companies handle and the experience of the members of staff represents a considerable saving in the Debt Collection operation for the small business.
When evaluating Debt Collection Software, the small business will always have to visualise it from an amateur viewpoint and so the one with the best manual or online help that can both describe how the Debt Collection operation works and also the important things to put into Debt Collection Letters that will convince the large business that it is better to pay the account than leave it as it is. The more help that the Debt Collection Software can supply when it comes to the content of Debt Collection Letters, then the easier and faster the members of staff in the small business will become at creating good quality Debt Collection Letters. This help can come in the form of written examples in the manual, but a better form would be electronic files such as templates that can be used as a basis for the real Debt Collection Letters. The Debt Collection Software should provide database programmed piece of Debt Collection Software can be clever. The debt can be first recorded in the Debt Collection Software database and the Debt Collection Letters templates can be set up so that they will copy key fields in the database record and populate the live Debt Collection Letters with the correct data of the large business. The database functionality is quite important if the small business finds that it needs to take the large business to court. Before the court officials will accept the case they will need to see documentation that the small business has made efforts in the Debt Collection operation but failed to get the debt paid. The database could be set up to print off a report of the key activities in the Debt Collection operation such as Debt Collection Letters being composed and sent out, incoming letters and emails, phone calls being made and received, also copies of accounts and other paperwork. In this way the Debt Collection Software is doing vital work rather than the members of staff having to update manual records.
Filed under Debt Free by on Aug 8th, 2010. Comment.
