The Government Is Looking Into Forcing The Financial Institutions To Meet Lending Targets, But Will This Help A Small Organisation That Needs Financial Support Now? September 6, 2010
Posted by janey in : general finance , trackbackApparently minsters are looking into a scheme to force banks to meet lending targets as a way of tackling the lending drought. Alternatively, the state may underwrite some loans. This should be welcome by firms large and small that have tried and been rejected when requesting their banks for financial support. This was announced by the Prime Minister in Manchester this week and appears to be a positive move to encourage the banks to support firms to get the economy on the road to recovery. Where a small firm has submitted their account for jobs completed or merchandise supplied to a large firm and have not been paid after the agreed final completion date, they may well be concerned, especially if they have laid out a fair amount of expenditure to the work and have bills of their own to pay. If the small firm asks their bank, would this current move by the government have made the banks more amenable to lending, and allowed the small firm to have a business loan? perhaps not, since they have not received any official notification as yet and so cannot change their methods. This can leave the small firm with a problem and make them assess their directions to encourage the large firm to pay the late account, which may boil down to Debt Collection proceedings.
They may well make up their minds that the typical Debt Collection services such as solicitors and Debt Collection Agencies can give may put them off, since solicitors and Debt Collection Agencies charge from 10% to 20% or more of the account value. This may be acceptable, but if not then perhaps the small firm should expand their search and perhaps look at Debt Collection software. For a spend of some £40 the small firm can buy a decent Debt Collection software suite, and also they can use this Debt Collection software suite for any other Debt Collection work that comes up at little or no extra cost. solicitors and Debt Collection Agencies would certainly charge their fees for every Debt Collection work that they take on.
While existing solicitors and Debt Collection Agencies are likely to abide by Fair Debt Collection Practices as part of their trustworthy approach to Debt Collection, the newer Debt Collection Agencies that have cropped up since the financial downturn started may not. These Fair Debt Collection Practices should ensure that the business relationship that has grown during the Debt Collection operation. This quandary over good and bad Debt Collection Agencies and solicitors may well make the Debt Collection software strategy seem the safest choice, even though they will have to allocate their own resources to errors the Debt Collection software and the Debt Collection operation itself. The personnel that are allocated will need learning in how the Debt Collection operation runs and also how to write good quality Debt Collection letters. For this they will need to have a good grasp of the English language to ensure that there are no errors in the Debt Collection letters that reach the large firm. They will all have to abide by the Fair Debt Collection Practices since they will want to be seen as trustworthy while running the Debt Collection operation. So by working hard on the learning and employing Fair Debt Collection Practices the small firm must have a very good chance of convincing the large firm to pay the late account, and all at a cheaper price than that charged by solicitors and Debt Collection Agencies.
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