In the recent budget the Chancellor of the Exchequer promised a proposal for taxing banks to allow a fund to be set up in case of another melt down of the financial sector. This could well make the banks think about how they evaluate risks and this could include providing overdraft facilities to small companies. In the case of a small company that has managed to survive the economic situation so far but is now in need of help after an account with a large company has been unpaid for some time, will the banks help or make them get the account paid first? The answer could well depend on too many variables to be easy, so perhaps the best choice is for the small company to look at Debt Collection first. They will have already contacted the large company and had no success in persuading them to pay the account so Debt Collection could well be their last resort.

When the small company examines what Debt Collection services are available, they could well find lots of usual Debt Collection services such as legal practices and Debt Collection Agencies which have talent in business to business Debt Collection. The drawback here is that the economic situation has shown an increase in their numbers and although there are many ethical and professional legal practices and Debt Collection Agencies out there, there could well be some that are not so professional in how they do their business. The last thing the small company wants is for the large company to be faced with threatening letters or behaviour, performed in the name of the small company, since this could easily destroy any commercial relationship that exists between the two companies. Also they could find that the fees are not acceptable since legal practices and Debt Collection Agencies charge in the region of 10% to 20% or more of the account value and this could well be plus expenses. This sort of value could represent a sizeable part of the profit for the small company and a cost they could not wish to pay.

The other Debt Collection choice they could wish to think about is Debt Collection Software where the small company carries out the Debt Collection project with their available resources instead of paying Debt Collection Agencies or legal practices. The benefits here are in the cost, where a decent Debt Collection Software suite can cost around