The answer to this question is some of them comply, some of them don’t. The part state financed banks such as RBS and TSB are in fact lending to small enterprises, although maybe more cautiously than previously, so they will need to be sure that the small enterprise is capable of keeping up the instalments. Some of the other banks could well say that they are lending to small enterprises but there are reports of high interest charges, or hard conditions being required. For a small enterprise that has sent an invoice to a large enterprise for projects completed or merchandise provided and then has seen that invoice remain overdue after the agreed final settlement date, they could well be in need of that invoice settlement for their cash flow needs. Their chances of satisfying the conditions for a bank loan could not be too good if their financial position a bit shaky and so they could see their options for asking the large enterprise to clear the overdue invoice as being limited. When looking at their options for asking the large enterprise, they could well decide on Debt Collection proceedings as their best chance of success. This is where the financial situation comes into play, since the accepted Debt Collection providers such as lawyers and Debt Collection Agencies tend to charge from 10% to 20% or more of the invoice value for their Debt Collection services. For a small enterprise this cut could well be a significant cut of their profit and so this could be a costly Debt Collection route to take, especially if they cannot convince the bank to give them a loan at reasonable rates and conditions. A further issue exists since the economic downturn in that there has been an increase in the number of Debt Collection Agencies and lawyers touting for business Debt Collection work. The issue is that some of these newer Debt Collection Agencies and lawyers could not be as reliable as the established ones, where the issue is that the newer Debt Collection Agencies or lawyers could not adhere to the Fair Debt Collection Practices if they think this will slow them down from getting the money. Established Debt Collection Agencies and lawyers would adhere to the Fair Debt Collection Practices, since they recognise that keeping both parties on amicable terms is one way of getting further business.

For the small enterprise then, maybe Debt Collection software can be a suitable solution to their Debt Collection issue, as with this they can take on the Debt Collection operation with their own resources and also save money, since a decent Debt Collection software application can cost around £40. In reality the small enterprise will need to allocate their own resources to both operate the Debt Collection software application and to create the Debt Collection letters, which are at the crux of the Debt Collection operation. The people chosen will need tuition in how the Debt Collection operation works and also in the Fair Debt Collection Practices, which could well be more important to those who are to create the Debt Collection letters. The manual that is part of the Debt Collection software should provide this tuition either as part of the application or as links to the Debt Collection software makers web site.

Provided the people in the small enterprise adhere to the Fair Debt Collection Practice and operate the Debt Collection software correctly, then they should be able to convince the large enterprise to clear the overdue invoice while at the same time retaining the professional relationship.