When a small firm has had a good start and seen a profitable run, it is likely that their Bank will be supportive when it comes to financial support, but that is not certain as some small firms have found. A report by the BBC shows that one small firm had a good relationship with finance houses for a long time but once the current financial situation hit the finance houses changed and either refused to help or had increased the prices. Another firm however, had found that their Bank did appreciate their economic success and was supportive.

It might well be unlikely that the finance houses would be supportive of a small firm that looked for funding because of an unsettled invoice with a large firm that is still trading, since the Bank might well interpret this as bad economic practice. The small firm will need to do something about it and their first move should be to speak with the large firm to ascertain why the invoice has not been paid. If this results in an unacceptable reply then the small firm might well feel fully justified in checking out Debt Collection as a means of recovering the invoice payment. Where the small firm is short of cash they will need to consider their Debt Collection options very carefully, since, depending on the invoice value, the process can vary widely. Normal Debt Collection services such as those provided by lawyers and Debt Collection Agencies usually charge a percentage of the final invoice value and this is in the range of 10% to 20% but might be higher and might not include expenses. A DIY strategy of using Debt Collection Software can cost around £40 for a decent application, but of course, the small firm would have to take on the Debt Collection work with their available resources as well as run their own company, so this might well have to be considered. Clearly the Debt Collection Agencies and lawyers charges are set to cover their costs, such as a team of skilled employees to work on the Debt Collection contract and accommodation with the attendant overheads.

Going for the Debt Collection Software option might well put the small firm onto a learning curve for the Debt Collection process and it is here where their selection of Debt Collection Software applications is important. They should assess the manuals and any other helpful material or resources that are included in the Debt Collection Software applications as these might well be the key to making the Debt Collection process work. The Debt Collection Software should give the employees in the small firm a good understanding of how the Debt Collection process works and the significance of writing good quality Debt Collection letters. The Debt Collection Software should provide guidance on pertinent laws that can be used and also any sentences that Debt Collection Agencies use, all of which should enable the employees to generate good Debt Collection letters. The employees chosen for this should have a good knowledge of English so that the Debt Collection letters will not have any spelling or grammatical oversights in them as this could upset the Debt Collection process and also put the small firm in a bad light with the large firm.

It is hoped that the Bank will see this proactive strategy to Debt Collection as a worthwhile solution to the problem rather than spending money on lawyers or Debt Collection Agencies.