Finance Houses Still Pour Money Into Their Bonus Pots, But Will Not Provide Finance To Small Firms At Reasonable Rates.
Despite the poor financial climate and bailing out of finance houses by the Government, finance houses are still putting money into their bonus pots rather than helping small companies. Where finance houses do lend to small companies they seem to be using high rates of interest, which may well put a lot of small companies off. Where a small firm has sent an bill into a large firm for sold or merchandise sold and then have seen the bill become unpaid, this may get the small firm concerned about when they will receive settlement. They would communicate with the large firm firstly to learn what was happening and hope that they get an acceptable result. If that was not the result then they may feel put out and assume that they are being taken as a free credit service rather than a valued supplier of merchandise or services. The small firm may well then turn to Debt Collection as a method of getting the unpaid bill paid, but they will need to be careful when it comes to choosing a Debt Collection service.
The poor financial climate has brought about a rise the number of accepted Debt Collection services such as lawyers and Debt Collection Agencies, and while many of them will be ethical in their approach and employ Fair Debt Collection Practice, there is a good chance that there will be some lawyers and Debt Collection Agencies that see Fair Debt Collection Practices as just another blockage in the way of them making money. How the small firm is supposed to tell good from bad lawyers and Debt Collection Agencies is anyone’s guess, but the risk that the small firm may be taking is to the commercial relationship they may well have developed with the large firm. Any lawyers or Debt Collection Agencies that do not employ Fair Debt Collection Practices could easily destroy that commercial relationship to the extent that the small firm may not get any further work or orders from the large firm and worse still, word could spread in the local commercial area which could ruin the small firm.
The best way forward for the small firm may well be to use their entrepreneurial spirit and use Debt Collection software, so that they can use it themselves. The cost of Debt Collection software is about £40 for a good system of Debt Collection software, but for lawyers of Debt Collection Agencies the cost may be about 10% to 20% or more of the bill total, so for any bill for £400 or more it may be better to use Debt Collection software. obviously the small firm will need to designate resources for the Debt Collection project and they will also have to get up to speed with how the Debt Collection software works as well as what the Debt Collection process is all about. The vital parts of this are really what the Fair Debt Collection Practices are and then how to create good Debt Collection letters. The Debt Collection letters are at the crux of the Debt Collection process and so the personnel ear marked to create them should have a good understanding of English if errors are to be avoided. Knowledge of Fair Debt Collection Practices can help in giving the Debt Collection letters a better chance of convincing the large firm to settle the unpaid bill, while at the same time doing it in a way that should preserve the commercial relationship.
Tags: debt, debt advice, debt collection, Finance, finances