The haircuts refer to discounts, which are generated by the European regulators, to be taken off the national debt burden of certain member countries. These haircuts will be applied in the stress tests that banks must take to test their ability to withstand a further financial crisis. The haircuts are actually discounts off the member countries debts, which would assist them to clear the ensuing debt. The recommendations are that Greece government bonds will be reduced by 17%, Spain by 10% or 11%, UK similar to Spain, France by 6% and Germany by 4% or 5%. The capability of governments to clear national debt is surely linked to their national banks ability to withstand a new bad financial situation and so where banks have to set aside money to withstand the effects of a new bad financial situation, this may mean that they have less funds available to lend to small firms. It may also mean that income from investments and savings may be reduced, which may affect large firms which rely income from investments.

This may make the large business delay completion of the bill from the small business, but from the side of the small business, this is plain wrong since they will have completed projects or delivered goods and now have every right to be paid. They would obviously make contact with the large business to find out when the bill is to be paid, but if they didn’t get a positive result then they may well feel that Debt Collection proceedings was their only way of getting paid. This would be probable especially if they had failed to obtain overdraft facilities from the banks, but this may also mean that their reserves for the Debt Collection project were limited. The traditional Debt Collection services of solicitors and Debt Collection Agencies tend to charge in the region of 10% to 20% or more of the bill value, rather than a fixed price. This may well be a large slice for the small business to sacrifice and so they may well decide to look for a more economical Debt Collection solution. They may then come across Debt Collection Software, for which £40 can buy a decent Debt Collection Software application. Naturally the small business will need to consider how to resource the Debt Collection Software as they will need to learn about how the Debt Collection procedure works and then assign members of staff to take on the various responsibilities. In order to understand the Debt Collection procedure, it is best to investigate the set of instructions or on-line help that is part of the Debt Collection Software application. They may expect to find information not only on the Debt Collection procedure but also on how to write Debt Collection letters, such as what pertinent legislation is there that can be used and are there any good snippets that Debt Collection Agencies use that can be utilised?

The small business should be able to get the large business to pay the outstanding bill and for the small business this will accomplished at a much reduced cost that if they had used solicitors or Debt Collection Agencies. Also the small business will now have the Debt Collection Software and the skill to use it for any future Debt Collection projects that come along and at no extra cost, whereas the solicitors and Debt Collection Agencies would charge their fees for each and every Debt Collection project that they take on.