In situations where a small company has provided services or items to a larger company over a long period of time and has been paid without trouble in the past, it might come as a major problem when the latest invoice goes beyond the final payment date. The small company might be thinking about Debt collection procedures, but hopefully they will firstly talk to the larger company and try and understand why the latest invoice has gone tactics might be dependant on the outcome of this conversation and if the larger company has opened up to having some financial difficulties, maybe from some of their own accounts still awaiting settlement, they might well offer a part payment on account. This might be acceptable especially if both organisations are keen to keep hold of their mutual good relationship, and as the larger company have been open and honest about their side of the issue the payment on account might be the best short term amswer.

However, if the larger company does not give a plausible reason to the small company, then they might feel that they are being used as a free credit service and not as a trusted supplier. In this case they might well feel fully justified in looking at their options for Debt collection, being mindful of the cost component of every option as the unpaid debt might represent a sizeable part of the cash flow for the small company. The usual option for Debt collection might be seen as a visit to the solicitor to discuss the case, but this consultation might have a cost to it and suppose the preferred solicitor is not very skilled in Debt collection, the small company might need to look elsewhere. The next logical option might be seen as a Debt collection business, if there is one nearby, if not then contact might be by phone and email, by which means it is problematic to evaluate the professionalism and integrity of the Debt collection business. It is possible that publcised ones are also the latest and might lack experience in Debt collection, so it might be best to try somewhere like Business Link to see if they can recommend a debt collection business. It is possible that the Debt collection business will charge based on the value of the debt and so might be a significant amount.

The small company might also look for Debt collection software so that they can take on the work themselves, but they will need to check out Debt collection packages with care since the quality of the manual or on-line help might be their key to learning not only how to operate the Debt collection software but how to carry out the Debt collection operation to best effect. Debt collection letters form the key in the Debt collection operation and the Debt collection software will need to have clear instructions on how to write suitable Debt collection letters for each part of the Debt collection operation, should the first of the Debt collection letters not prove successful. A slicker solution to clear instructions, or maybe as well as, would be to have the Debt collection software package include templates or samples of a set of Debt collection letters, so that the small company can use these as a basis when writing their own Debt collection letters. The Debt collection software will also need to have some sort of database interface so that key happenings in the Debt collection operation can be recorded, such as when Debt collection letters are despatched, registering incoming letters or emails and then enabling reports to be produced that will be useful as evidence should the Debt collection software operation not produce the required results and the large company has to be taken to court.

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