Debt collection is always an option for a small organisation facing an outstanding account with a larger organisation. The logical course of action would be to speak with the larger organisation and understand why the account has stayed outstanding, which may expose a simple answer that may be corrected fairly rapidly and get the account paid. But if this approach proves unsuccessful then Debt collection is really the only obvious choice available to the small organisation, but which method should the small organisation choose? Without going into the nuts and bolts of Debt collection, the charges appear to give a outlay for the latter 2 paths are almost certainly based on a percentage of the total debt remaining, which may be a important sum. This is levied for each debt that the small organisation may use the solicitor or Debt collection agency for. Debt collection software on the other hand is a one off cost, which may begin under £100, and it can then be used for more debts with low operating costs.
The benefit of a solicitor or Debt collection agencies is that the small organisation shouldn’t have to dedicate too much of their time to the activity and so they have more time to run the business. Debt collection software will be an in-house activity and so will have to have resources to be assigned, such as an employee to run the application and there may be a new computer wanted, depending on what is currently at hand in the small organisation base. It would be beneficial to have a second employeeinvolved in the Debt collection software to cover breaks and medical emergency situations or if the main employee leaves the small organisation. The workers chosen should have a good knowledge of English language, spelling and grammar so that they can write good Debt collection letters, since these are at the centre of the Debt collection activity and they will be what the large organisation receives and so will reflect on the large enterprise’s perception of the small organisation.
To assist the writing of Debt collection letters the Debt collection software should provide instructions as well as examples of Debt collection letters for each stage of the Debt collection activity. The examples are best provided as electronic documents that can be copied and edited to write genuine Debt collection letters. The manual should informthe users about such things as the law that is in force at the time and how to reference this in Debt collection letters. But the users should also be know of any contract that is in place for work or supply of items from the small organisation to the large organisation as this can have an impact on the legal sections that can be used.
The Debt collection software must be able to record key events that happen through the Debt collection activity, such as the production of Debt collection letters and their despatching to the large organisation, the large organisation response to the Debt collection letters and the text of any phone calls between the small and large organisation. This is needed if the case needs to be taken to court because the case will not be heard unless the court is happy that substantial work has been made in the Debt collection activity previously.
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