Despite the economic downturn and bailing out of finance houses by the Government, finance houses are still filling their bonus pots rather than helping small companies. Where finance houses do lend to small companies they seem to be setting high rates of interest, which could well put a lot of small companies off. Where a small business has sent an bill into a large business for supplied or merchandise delivered and then have seen the bill become unpaid, this could get the small business concerned about when they will receive clearance. They would get in touch with the large business firstly to find out what was happening and hope that they get a satisfactory outcome. If that was not the result then they could feel put out and believe that they are being seen as a free credit service rather than a valued supplier of merchandise or services. The small business could well then turn to Debt Collection as a way of getting the unpaid bill settled, but they will need to be careful when it comes to deciding on a Debt Collection service.

The economic downturn has brought about a growth the number of usual Debt Collection services such as legal practices and Debt Collection Agencies, and while many of them will be trustworthy in their approach and stick to Fair Debt Collection Practices, there is a good chance that there will be some legal practices and Debt Collection Agencies that see Fair Debt Collection Practices as just another difficulty in the way of them making money. How the small business is supposed to tell good from bad legal practices and Debt Collection Agencies is anyone’s guess, but the risk that the small business could be taking is to the commercial relationship they could well have developed with the large business. Any legal practices or Debt Collection Agencies that do not stick to Fair Debt Collection Practices could easily harm that commercial relationship to the extent that the small business could not get any further work or orders from the large business and worse still, word could spread in the local commercial area which could ruin the small business.

The best way forward for the small business could well be to use their entrepreneurial spirit and use Debt Collection software, so that they can use it with their available resources. The cost of Debt Collection software is about £40 for a good application of Debt Collection software, but for legal practices of Debt Collection Agencies the cost could be about 10% to 20% or more of the bill total, so for any bill for £400 or more it could be better to use Debt Collection software. obviously the small business will need to set aside resources for the Debt Collection project and they will also have to get to know how the Debt Collection software works as well as what the Debt Collection operation is all about. The important parts of this are essentially what the Fair Debt Collection Practices are and then how to create good Debt Collection letters. The Debt Collection letters are at the centre of the Debt Collection operation and so the people assigned to create them should have a good knowledge 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 getting the large business to settle the unpaid bill, while at the same time doing it in a way that should keep the commercial relationship.

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