Who Are You Going To Call If A Large Company Seems To Be Deliberately Tardy In Settling Your Invoices?

In Credit Score of CreditGuru (April 8, 2010 9:53 am)

Some large organisations could conduct themselves in what seem like inconsiderate ways when it comes to paying what they see as unimportant invoices for work completed or equipment that have been provided by a much smaller organisation. For the small organisation the amount outstanding could mean a significant amount of earnings and any delay might seriously affect their cash flow position. In cases like these the small organisation could have to resort to Debt collection strategies, which they could already have in place, especially if they have been faced with these situations in the past. For those small organisations that are faced with this situation for the first time, the next action could well pose questions, like “Who am I going to call?” Well maybe the Ghostbusters could present a daunting sight at the reception desk of the large organisation, but maybe they aren’t the best team for Debt collection, as that’s physical rather than metaphysical .

The option of what to do next could depend on the liquidity of the small organisation, as charges for a solicitor who specialises in Debt collection, or a specialist Debt collection agency could be high, when compared to looking at Debt collection software as a process of tackling the problem themselves. Debt collection software could be well worth thinking about for the small organisations who have experienced Debt collection in the past, as less expensive way of doing it, since the solicitor or Debt collection agency 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 organisation 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 organisation that the small organisation 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 organisations from taking advantage of their position and power to withhold payment to small organisations until they were ready.

It could be that the small organisation was set up with good advice, maybe from Business Link and so it could be that the contract with the large organisation was written to include a late payment penalty clause, so in these cases the Debt collection software should permit the user to replace 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 organisation could then need to take the matter further and look to taking the large organisation to court, or even just consulting a solicitor for that step, the small organisation will need to show records 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.

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  1. [...] Who Are You Going To Call If A Large Company Seems To Be … [...]

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