The British Chambers of Commerce (BCC) carried out a survey of 5,600 British organisations recently and has shown growth of between 0.6% and 0.7% for the three months to the end of June. They did have some concerns though, for sustained recovery and also for recovery in the service sector. Manufacturing was performing better but many areas have suffered from an increase in raw materials prices, up to 80% in some cases, however manufacturing exports grew to their highest level for four years which was largely attributed to the favourable exchange rate.
If a small company has been waiting for an outstanding account to be cleared they may well see these figures and be hopeful that the large company, which they have done work for or provided equipment to, is now able to pay the account. If they communicate with the large company to uncover and don’t get a positive reply they may well feel that they are being made use of and need to take control of the situation. This may set them on the road to Debt Collection, but this is when some hard choices have to be taken. The small company will have to investigate their Debt Collection options and will no doubt find many accepted Debt Collection options such as lawyers and Debt Collection Agencies, but the current recession seems to have seen a growth in their numbers and this may mean that some either inexperienced or possibly unethical Debt Collection Agencies or lawyers are touting for business. The risks for the small company may range from outrageous fees to harming the commercial relationship the small company may have developed with the large company, which may lose them future business.
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 internally and so have control of communications with the large company. However, they will have to ear mark 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 or online resources as it may well be the case that the small company has little or no experience of Debt Collection. Any documentation based or online tuition should explain how the Debt Collection activity works, especially the role of Debt Collection letters since these are at the centre of the Debt Collection activity. The people ear marked to generate the Debt Collection letters should have a good knowledge of English and there should be no spelling or grammatical errors in any Debt Collection letters sent to the large company as this may disrupt the Debt Collection activity 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 account value, while a decent 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.