A Small Firm Has Their First Outstanding Invoice And Needs To Find A Good Debt Collection Method. Are Normal Ones The Best?

When a small business has carried out many contracts for a number of larger firms and has never had any overdue settlement of their accounts, it could come as a surprise if one of the large firms has let their latest bill go over the agreed clearance date without paying it. After such a long successful working time with larger firms, the small business is bound to have nurtured a good commercial relationship with them all and would not wish to ruin this by not getting in touch with the large business concerned first to get their side of the story. They will hope for a positive outcome and soon see the bill payment arrive, but if this is far from the truth and the small business thinks that they are not getting all of the information they should then they could be of the opinion that they are being used. They could then feel that their only chance of getting the bill paid is by Debt Collection proceedings.

As this is the first overdue bill clearance for the small business, their experience of Debt Collection procedures is probably very limited and their initial searches could well bring up the typical Debt Collection services of legal practices and Debt Collection Agencies. However the recession has seen an increase in the numbers of Debt Collection Agencies and legal practices offering commercial Debt Collection services, but the small business needs to be mindful that not all of the new ones could be as ethical as established legal practices and Debt Collection Agencies. This can affect the small business in two man ways; firstly the debt unethical collection agencies or legal practices could use bad Debt Collection methods that could tarnish the hard won commercial reputation and secondly the fees could not be apparent initially and so could rise alarmingly as the Debt Collection procedure continues. It could be very difficult for the small business to distinguish between good and bad legal practices and Debt Collection Agencies and so the risks could not be worth taking.

The other Debt Collection method is Debt Collection Software whereby the small business takes on the Debt Collection project in-house. This has financial benefits but on the other hand the small business has to supply their own resources to use the Debt Collection Software. The financial benefits come from the costs for legal practices and Debt Collection Agencies being in the range of 10% to 20% or more of the bill value, and the price for a decent Debt Collection Software suite being around the

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