The Office of National Statistics has declared that the UK economy has developed to 1.1% in the second quarter, which is way better than the forecast growth of 0.6%. The improvement areas were services and construction, but transport was down, presumably from the repercussions of the Icelandic volcanic ash clouds that prevented flying for so long. So if the large organisation in question is a member of the services or construction area then they should see their revenue increasing and now be in a position to release funds to pay the bill to the small organisation. The small organisation may well contact the large organisation to get to know about the bill and would hope that they get an acceptable reply. If the large organisation still delays settlement then the small organisation may feel justified in starting Debt Collection measures, but their cash flow position may well influence the Debt Collection track.

If the small organisation has improved profits because of the improvement in the economy then they may well simply pass the Debt Collection contract onto a accepted Debt Collection service provider such as legal practices or Debt Collection Agencies. While this may seem an easy solution, the small organisation may not be aware that the bad financial situation has seen a growth in the numbers of Debt Collection Agencies and legal practices that are offering business Debt Collection services. It would not be unusual to find that some of these newer Debt Collection Agencies or legal practices are not as dependable as existing ones, but it may be difficult| for the small organisation to tell the difference between good and bad legal practices and Debt Collection Agencies. The costs for legal practices and Debt Collection Agencies are around 10% to 20% or more of the bill value, so even if their cash flow position are OK, the small organisation may not wish to forego up to 20% of the bill value.

The alternative Debt Collection direction is to use Debt Collection Software which will allow the small organisation to take on the Debt Collection project with their own resources, and around the ?40 mark buys a decent Debt Collection Software package. In reality the small organisation won’t have a team of professional employees like Debt Collection Agencies and legal practices have, so they will have to examine what resources they have of employees and time. When assessing Debt Collection Software suites, the user guide should be assessed in particular since it will provide information on training, so that the employees in the small organisation can learn about the Debt Collection procedure and how to use the Debt Collection Software at the same time. There will need to be employees nominated to generate Debt Collection letters since these are at the centre of the Debt Collection procedure and the employees chosen should have a good grasp of English so that there won’t be any oversights in Debt Collection letters that are sent out. The user guide should provide specific help on how to generate these Debt Collection letters and include any appropriate Acts of Parliament as well as any clever snippets that Debt Collection Agencies use.

Provide the employees in the small organisation pick up the Debt Collection procedure quickly and can generate good quality Debt Collection letters, they must have a good chance of using the Debt Collection Software to persuade the large organisation to pay the bill. They will have achieved this at a lower price than legal practices or Debt Collection Agencies would charge and they also can use the Debt Collection Software for any further Debt Collection projects that turn up at little or no extra cost, rather than having to pay the fees for legal practices and Debt Collection Agencies each time.

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This entry was posted on Wednesday, September 8th, 2010 at 2:53 pm 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.