A Banks Taskforce Is To Be Formed To Address Lending To Viable Businesses, But Will This Help A Small Enterprise Struggling Because Of An Late Invoice With A Large Company?
The task force, set up by Stephen Green, the boss of HSBC and also the British Bankers Association, is to make sure that small viable firms have access to financial packages for the support of the UK economy. They are also to investigate difficulties that have an effect on the markets and any other difficulties that would have an effect on the ability of UK firms to obtain financial packages. The task force is to comprise leaders from 6 UK banks, members from the treasury, BIS and the Bank of England. They are to produce their report to the Chancellor of the Exchequer in October, but unless there is some enthusiasm in the current financial sector to actually help out small firms, this report may well be too late for some. For a small firm that has been waiting for a large firm to settle an overdue bill for work completed or equipment supplied, this task force may well be good news, but only in the medium to long term. At present they may need to check out Debt Collection as a way of getting the large firm to settle the overdue bill, but that can generate challenges in itself.
The normal Debt Collection services of legal practices and Debt Collection Agencies may seem like a comfortable way of passing the Debt Collection project over to the experts, who can be assured to use the Fair Debt Collection Practices, but the costs may be rather high, at 10% to 20% or more of the bill value. What is more, the poor economic climate has brought about a growth in the numbers of Debt Collection Agencies and legal practices that are offering commercial Debt Collection services. Some of the newer Debt Collection Agencies and legal practices may not be as dependable as established ones, where they may cut corners by not sticking to Fair Debt Collection Practices and thereby threatening the commercial relationship the small firm may well have developed with the large firm.
A handling this Debt Collection problem would be to use Debt Collection software, which allows the small firm to take on the Debt Collection project internally, thereby saving money and also being in control of how the Debt Collection activity is ran. A good Debt Collection software system can be bought from around £40 and so represents a good saving. obviously the small firm will have to provide the resources to run the Debt Collection software and their members of staff will need tuition in the Debt Collection activity itself and also how to generate good quality Debt Collection letters. Those writing the Debt Collection letters will need to have a good understanding of English to avoid any difficulties in the Debt Collection letters. They will all need to know about the Fair Debt Collection Practices since these can go a long way to convince the large firm to settle the overdue bill and hopefully, to respect the small firm at the same time. It may be a tough learning curve but the Debt Collection software should give dividends and by adhering to the Fair Debt Collection Practices in the Debt Collection letters, the small firm has a good chance of getting the large firm to settle the bill and at a lower cost that legal practices or Debt Collection Agencies would have charged.