A Large Company Has An Exemplary Bill Payment Record For Work Done By A Small Company, But Has Fallen Behind With The Latest Bill. What Can Be Done?
It must come as nothing new that in the current economic downturn some businesses are seeing late payment issues. For a small organisation that has been supporting a large organisation for some years and has not had any bill payment issues, to find that their latest bill has remained unpaid beyond the agreed final payment date, this must come as a shock. The small organisation might well have been happy to give the large organisation some leeway, but maybe their own reserves are starting to run low and they might well feel the need to do something more. Obviously they should get in touch with the large organisation and discover if there is a serious issue or are they just stalling? If the small organisation do not feel happy with the reply then they might feel fully justified in examining Debt Collection options, but their low cash flow position might rule out the use of the more typical Debt Collection solutions. solicitors and Debt Collection Agencies can easily cost from 10% to over 20% of the final bill value, which to a small organisation, can be a important amount to lose even if the solicitors or Debt Collection Agencies do the work on behalf of the small organisation and might have a good success rate. It is nothing new that the economic downturn has seen an increase in the number of Debt Collection Agencies and also solicitors offering Debt Collection services, but the small organisation needs to be careful here for these new ones might not be bothered about the lengths they are unconcerned to go to recover the debt. Any unethical, unprofessional or downright illegal actions, undertaken in the name of the small organisation could tarnish the good name they have built up and also harm the commercial relationship they will have [dpin]developed|built|nurtured[/spin] with the large organisation.
If the small organisation is happy to put some effort and resources into this Debt Collection project, they might look at Debt Collection Software which will let them to take on the Debt Collection project themselves and allow them to control how the Debt Collection activity is handled. The main feature of the Debt Collection activity is debt collection letters since these are the main communications medium between the two businesses during the Debt Collection activity and so care must be taken when creating these. This leads on to the resources that the small organisation will have to assign, with personnel being the most serious consideration, especially those who are to write the debt collection letters. These personnel should have a good command of the English language since the debt collection letters must not have any spelling or grammatical problems in them or this could disrult the Debt Collection activity. There will also need to be personnel who operate the Debt Collection Software, who will need to be ICT literate.
The small organisation is likely to have little experience in Debt Collection and so the Debt Collection Software should come with a set of instructions which can explain not only how the Debt Collection activity works but how the Debt Collection Software operates within this activity. There should be dedicated help on creating debt collection letters, covering topics such as relevant legislation, or useful wording or better still, clever phrases as used by Debt Collection Agencies. The Debt Collection Software should be able to register all of the activities that occur during the Debt Collection activity, just in case the large organisation has to be taken to court, where the court officials will need to see details of prior Debt Collection efforts, before they will allow the case to go before the bench.
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