In situations where a small firm has provided services or goods to a larger firm over a long period of time and has been paid without trouble in the past, it might come as a surprise when the latest bill has not been paid on time. The small firm might be considering Debt collection procedures, but hopefully they will firstly contact the larger firm and try and unsettled. Their next steps might depend on on the end result of this conversation and if the larger firm has opened up to having some financial problems, possibly 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 companies are keen to keep hold of their mutual good relationship, and as the larger firm have been open and honest about their side of the difficulty the payment on account might be the best interim fix.

However, if the larger firm does not give a suitable reason to the small firm, 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 exploring their choices for Debt collection, being mindful of the cost component of every move as the unpaid debt might represent a sizeable part of the cash flow for the small firm. The usual move for Debt collection might be seen as a visit to the solicitor to discuss the issue, but this consultation might have a fee to it and suppose the preferred solicitor is not very experienced in Debt collection, the small firm might need to look somewhere else. The next logical move might be seen as a Debt collection firm, if there is one in the local area, if not then contact might be by phone and email, by which means it is difficult to suss out the professionalism and integrity of the Debt collection firm. 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 firm. It is most likely that the Debt collection firm will charge based on the value of the debt and so might be a significant amount.

The small firm might also look for Debt collection software so that they can take on the work themselves, but they will need to evaluate Debt collection packages in detail since the quality of the user guide or on-line help might be their key to grasping not only how to use the Debt collection software but how to carry out the Debt collection process to best effect. Debt collection letters form the key in the Debt collection process 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 process, should the first of the Debt collection letters not prove successful. A more suitable solution to clear instructions, or possibly as well as, would be to have the Debt collection software package provide templates or samples of a series of Debt collection letters, so that the small firm can use these as a starting point when writing their own Debt collection letters. The Debt collection software will also need to have some sort of database function so that key happenings in the Debt collection process can be recorded, such as when Debt collection letters are despatched, registering incoming letters or emails and then allowing reports to be produced that will be useful as evidence should the Debt collection software operation not produce the required results and the large firm has to be taken to court.