When a small enterprise has completed a project for a larger enterprise and sent in their invoice as normal, it may come out of the blue if they are left waiting for settlement after the final settlement date. In the current economic downturn, many organisations have gone into recievership while others are struggling to stay solvent, so this unpaid invoice may be very important to the small enterprise and one they will need to have paid soon. If the small enterprise is indeed short of revenue and has not had a satisfactory answer when they contacted the large enterprise, then they may well come to realise that their next move will be Debt Collection.

The Debt Collection market seems to have boomed since the economic downturn started and this may now be something of a minefield for a relative newcomer, which the small enterprise may well be. While in the traditional Debt Collection area of solicitors and Debt Collection Agencies there are no doubt a lot of reliable and ethical ones, it may be the case that some newer entrants may not be so ethical. This may be displayed in the shape of unprofessional Debt Collection practices being employed such as threatening behaviour or intimidation, or escalating fees perhaps. It will be unlikely that the small enterprise will be able to tell the good from the bad when assessing solicitors and Debt Collection Agencies, but in any event the normal charges that both solicitors and Debt Collection Agencies levy are in the range of 10% to 20% and maybe more of the invoice value. For this the small enterprise will get the Debt Collection process taken out of their hands and managed by a team of experienced people. The small enterprise will need to realise that the solicitor or Debt Collection Agencies will be acting in the name of the small enterprise and so the working relationship that they have built with the large enterprise may be at risk. The other Debt Collection option is Debt Collection Software, which allows the small enterprise to take on the Debt Collection process with their available resources and so to be in control of how the Debt Collection process is handled.

When it comes to cost, Debt Collection Software may seem attractive when for around ?40 the small enterprise can buy a decent Debt Collection Software package and this being a one-off purchase it can be used for any future Debt Collection projects at no extra cost. However the small enterprise will no doubt realise that they must provide the resources and time to manage the Debt Collection Software and also they may well have a learning curve to negotiate as they may not have any experience in Debt Collection. When they evaluate Debt Collection Software suites the small enterprise should look at the documentations since they may be the main source of information. The documentation should give the workers in the small enterprise a good knowledge of how the Debt Collection process works and the seriousness of creating good quality Debt Collection letters. For creating the Debt Collection letters it would be very useful if the documentation could provide details of current laws that the small enterprise could use and also any useful snippets that Debt Collection Agencies use. In this way the small enterprise has a good chance of getting the Debt Collection Software to pay dividends in convincing the large enterprise to pay the invoice, without damaging the working relationship.

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This entry was posted on Friday, July 9th, 2010 at 7:45 am and is filed under Business and Management. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.