A Banks Taskforce Is To Be Formed To Address Lending To Viable Enterprises, But Will This Help A Small Organisation Struggling Because Of An Outstanding Invoice With A Large Company?
In Credit Score of CreditGuru (August 30, 2010 2:08 am)
The task force, set up by Stephen Green, the chief of HSBC and also the British Bankers Association, is to make sure that small viable businesses have access to finance for the support of the UK economy. They are also to examine issues that impinge on the markets and any other issues that would impinge on the ability of UK businesses to obtain finance. The task force is to comprise heads from 6 UK finance houses, members from the treasury, BIS and the Bank of England. They are to publish their findings to the Chancellor of the Exchequer in October, but unless there is some will in the current banking sector to actually help out small businesses, this report may well be too late for some. For a small enterprise that has been waiting for a large enterprise to settle an outstanding bill for projects completed or items delivered, this task force may well be good news, but only in the medium to long term. At present they may need to investigate Debt Collection as a means of getting the large enterprise to settle the outstanding bill, but that can create challenges in itself.
The usual Debt Collection services of lawyers and Debt Collection Agencies may seem like an easy way of passing the Debt Collection project over to the experts, who can be assured to adhere to the Fair Debt Collection Practice, but the costs may be rather high, at 10% to 20% or more of the bill value. What is more, the bad financial situation has brought about a growth in the numbers of Debt Collection Agencies and lawyers that are providing business to business Debt Collection services. Some of the newer Debt Collection Agencies and lawyers may not be as ethical as established ones, where they may cut corners by not sticking to Fair Debt Collection Practice and thereby threatening the commercial relationship the small enterprise may well have developed with the large enterprise.
A cheaper[/spn] and possibly safer way of issue would be to use Debt Collection software, which allows the small enterprise to take on the Debt Collection project with their available resources, thereby saving money and also being in control of how the Debt Collection process is operated. A good Debt Collection software system can be bought from around £40 and so represents a good saving. naturally the small enterprise will have to provide the resources to use the Debt Collection software and their workers will need coaching in the Debt Collection process itself and also how to write good quality Debt Collection letters. Those creating the Debt Collection letters will need to have a good understanding of English to avoid any errors in the Debt Collection letters. They will all need to know about the Fair Debt Collection Practice since these can go a long way to encourage the large enterprise to settle the outstanding bill and hopefully, to respect the small enterprise at the same time. It may be a tough learning curve but the Debt Collection software should pay dividends and by adhering to the Fair Debt Collection Practice in the Debt Collection letters, the small enterprise has a good chance of getting the large enterprise to settle the bill and at a lower cost that lawyers or Debt Collection Agencies would have charged.
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