The Threatened Bank Tax Could Affect The Risks They Take, But Will This Include Small Companies, Especially Those Who Are Chasing Outstanding Debts With Big Companies?

In the first budget the Chancellor of the Exchequer announced a proposal for taxing banks to allow a fund to be put in place in case of another melt down of the financial sector. This could well make the banks consider how they handle risks and this could include providing overdraft facilities to small businesses. In the case of a small organisation that has been able to survive the economic downturn up to now but is now in need of support after an bill with a large organisation has been unpaid for some time, will the banks help or make them get the bill paid first? The answer could well depend on too many variables to be easy, so possibly the best path is for the small organisation to look at Debt Collection first. They will have already contacted the large organisation and had no success in persuading them to pay the bill so Debt Collection could well be their last resort.

When the small organisation checks out what Debt Collection services are available, they could well find lots of usual Debt Collection services such as lawyers and Debt Collection Agencies which specialise in commercial Debt Collection. The disadvantage here is that the economic downturn has shown a rise in their numbers and although there are many ethical and professional lawyers and Debt Collection Agencies at hand, there could well be a few that are not so careful about how they carry out their activities. The last thing the small organisation wants is for the large organisation to be challenged by threatening letters or behaviour, carried out in the name of the small organisation, since this could easily damage irrevocably any professional relationship that exists between the two businesses. Also they could find that the charges are not acceptable since lawyers and Debt Collection Agencies charge in the region of 10% to 20% or more of the bill value and this could well be plus expenses. This sort of value could represent a sizeable segment of the profit for the small organisation and a price they could not wish to pay.

The other Debt Collection path they could wish to consider is Debt Collection Software where the small organisation carries out the Debt Collection project in-house instead of paying Debt Collection Agencies or lawyers. The benefits here are in the cost, where a decent Debt Collection Software system can cost around £40, and the negotiations with the large organisation are in their hands not those of a third party, so their professional relationship can be retained. There is one more cost benefit in that once purchased the Debt Collection Software can be used for any number of future Debt Collection projects; whereas solicitor and Debt Collection Agencies will charge their fees for each Debt Collection project they manage.

Naturally the small organisation will have to designate resources to run the Debt Collection Software and to compose the Debt Collection letters. They will need help in this and the set of instructions that comes with the Debt Collection Software must have a good tutorial section that will explain how the Debt Collection process works and how to run the Debt Collection Software to suit. There must also be help in generating the Debt Collection letters, with information on current laws that can be used and also any sentences that Debt Collection Agencies use. In this way, with enthusiasm and dedication they must be able to encourage the large organisation to pay the late bill and also show the bank that they can run their organisation effectively.