The British Chambers of Commerce (BCC) carried out a survey of 5,600 British businesses recently and has predicted growth of between 0.6% and 0.7% for the three months to the end of June. They did have some concerns though, for long term recovery and also for recovery in the service sector. Manufacturing was delivering better but many areas have been hit by increase in raw materials market rates, up to 80% in some cases, however manufacturing exports grew to their highest level for four years which was mainly accounted for by the favourable exchange rate.
If a small company has been waiting for an outstanding bill to be settled they could well see these figures and be hopeful that the large company, which they have completed contracts for or sold products to, is now able to pay the bill. If they get in touch with the large company to ascertain and don’t get an acceptable response they could well feel that they are being made use of and need to take action. This could point them in the direction of Debt Collection, but this is when some difficult decisions need to be made. The small company will have to look into their Debt Collection paths and will no doubt discover many typical Debt Collection paths such as lawyers and Debt Collection Agencies, but the present financial situation seems to have seen an increase in their numbers and this could mean that some either inexperienced or possibly unprofessional Debt Collection Agencies or lawyers are touting for business. The risks for the small company could range from excessive fees to tainting the commercial relationship the small company could have nurtured with the large company, which could lose them future work.
Their searches should, at some point, lead the small company to a DIY option of Debt Collection Software. This will allow the small company to take on the Debt Collection project with their available resources and so have control of communications with the large company. However, they will have to assign their own resources of people and time if they are to make the Debt Collection Software package work for them. Their investigations into Debt Collection Software packages should extend to the documentation set or online resources as it could well be the case that the small company has little or no experience of Debt Collection. Any documentation set based or online tuition should explain how the Debt Collection process works, especially the role of Debt Collection letters since these are at the centre of the Debt Collection process. The people allocated to write the Debt Collection letters should have a good grasp of English and there should be no spelling or grammatical oversights in any Debt Collection letters sent to the large company as this could disrupt the Debt Collection process and put the small company in a bad light.
The cash savings can be significant since Debt Collection Agencies and lawyers charge around 10% to 20% or more of the bill value, while a well written Debt Collection Software package costs around ?40. The Debt Collection Software will be available to be used for any future debts at little or no extra cost but lawyers and Debt Collection Agencies will levy their charges for each Debt Collection project they take on.
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