Some large enterprises could behave in what seem like self centred ways when it comes to paying what they see as small invoices for work done or items that have been provided by a much smaller business. For the small business the amount outstanding could be a significant amount of revenue and any delay may seriously affect their cash flow situation. In cases like these the small business could have to resort to Debt collection processes, which they could already have in place, especially if they have found themselves in these situations previously. For those small enterprises that are in this situation for the first time, the next action could well ask questions, like “Who am I going to call?” Well perhaps the Ghostbusters could present a daunting sight at the reception desk of the large business, but perhaps they aren’t the best team for Debt collection, as that’s physical rather than metaphysical .

The choice of what to do next could depend on the solvency of the small business, as costs for a solicitor who specialises in Debt collection, or a specialist Debt collection firm could be high, when compared to looking at Debt collection software as a method of handling the situation themselves. Debt collection software could be well worth looking at for the small enterprises who have experienced Debt collection in the past, as less expensive way of doing it, since the solicitor or Debt collection firm would get paid for each Debt collection they performed, whereas the Debt collection software is a one-off purchase, which is reusable for any future Debt collection.

It would be so important for a small business tackling Debt collection for the first time to be careful in choosing the most appropriate Debt collection software package, since the Debt collection letters that will be generated need to look professional both in appearance and in wording so as to both show the large business that the small business knows what it is doing, and also to keep the relationship on a professional level.
In order to help with these requirements it is best to choose a Debt collection software package that includes either; templates of ready made Debt collection letters and/or full instructions with examples of how to best write Debt collection letters. These examples or templates should include references to the “Late Payment of Commercial Debts (Interest) Act 2002”, which was brought in to try and prevent large enterprises from taking advantage of their position and power to withhold payment to small enterprises until they were ready.

It could be that the small business was set up with good advice, perhaps from Business Link and so it could be that the contract with the large business was written to include a late payment penalty clause, so in these cases the Debt collection software should permit the user to substitute references to the act with references to the clause in the contract in the Debt collection letters that are sent out.
In case the Debt collection fails to produce results, the small business could then need to take the matter further and look to taking the large business to court, or even just consulting a solicitor for that step, the small business will need to show proof of what they have done so far. The Debt collection software should store copies of the Debt collection letters that were sent out, and also copies of any letters or documents received, all with date stamps.

So why not give Debt collection software a try, it will be cheaper and could work first time.