When a small company has got off to a good start and had a successful run, it is likely that their Financial Institution will view them in a good light when it comes to financial assistance, but that is not guaranteed as some small enterprises have found. A report by the BBC shows that one small company had a good relationship with finance houses for a long time but once the current financial situation hit the finance houses changed and either refused to help or had raised the prices. Another company however, had found that their Financial Institution did appreciate their commercial success and was supportive.

It could well be unlikely that the finance houses would be supportive of a small company that looked for funding because of an overdue bill with a large company that is still on the go, since the Financial Institution could well interpret this as bad commercial practice. The small company must do something about it and their first step should be to make contact with the large company to ascertain why the bill has not been paid. If this results in an unacceptable answer then the small company could well feel fully justified in checking out Debt Collection as a way of recovering the bill payment. Where the small company is short of revenue they will need to consider their Debt Collection paths very carefully, since, depending on the bill value, the charges can vary widely. Accepted Debt Collection services such as those provided by lawyers and Debt Collection Agencies usually charge a percentage of the final bill value and this is in the range of 10% to 20% but could be higher and could not include expenses. A DIY route of using Debt Collection Software can cost around £40 for a decent package, but of course, the small company would have to carry out the Debt Collection work with their available resources as well as run their own organisation, so this could well have to be allowed for. Obviously the Debt Collection Agencies and lawyers fees are set to allow for their costs, such as a team of expert employees to work on the Debt Collection contract and locations with the attendant overheads.

Going for the Debt Collection Software option could well put the small company onto a learning curve for the Debt Collection procedure and it is here where their evaluation of Debt Collection Software systems is important. They should assess the user guides and any other helpful material or resources that come along with the Debt Collection Software systems as these could well be the key to making the Debt Collection procedure work. The Debt Collection Software should give the employees in the small company a good appreciation of how the Debt Collection procedure works and the relevance of creating good quality Debt Collection letters. The Debt Collection Software should provide information on appropriate legislation that can be used and also any sentences that Debt Collection Agencies use, all of which should enable the employees to compose good Debt Collection letters. The employees chosen for this should have a good grasp of English so that the Debt Collection letters will not have any spelling or grammatical problems in them as this could upset the Debt Collection procedure and also put the small company in a bad light with the large company.

It is hoped that the Financial Institution will see this proactive route to Debt Collection as a useful solution to the problem rather than spending money on lawyers or Debt Collection Agencies.

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