This might seem like well worn management speak, but in the present financial downturn, when a small organisation finds that their latest invoice for work completed or equipment sold to a regular larger organisation has gone outstanding beyond the agreed final payment date might the small firms people have something to offer in the Debt Collection process?

When faced with this situation the small organisation would contact the larger organisation firstly and learn what is taking place. The hope would be that a simple error had been made and the invoice was simply overlooked but would now be paid as soon as possible. If the reply was not so clear but perhaps seemed like the large organisation was playing for time then the small organisation might feel that they were being used as a free credit service and might well look to Debt Collection options. Given the financial downturn and the fact that the banks still seem reluctant to offer financial support to small businesses, despite strong advice to the banks from the Chancellor of the Exchequer to the contrary, the small organisation might not be attracted to lawyers or Debt Collection agencies because of the fees charged. These fees might be in the range of 8% to 10% or more of the outstanding debt and payable as a deduction on settlement, there might also be expenses to be factored in as well. The option of doing the Debt Collection with their available resources with Debt Collection Software can look attractive from a financial viewpoint since decent suites can be had for under

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Tags: collection, debt recovery, invoices, overdue, past due

This entry was posted on Saturday, May 8th, 2010 at 9:37 pm and is filed under Finance. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.