It would seem that minsters are thinking about a scheme to force financial institutions to meet lending targets as a way of ending the lending drought. Alternatively, the state might underwrite some loans. This should be appreciated by firms large and small that have tried and been rejected when asking their financial institutions for financial support. This was announced by the Prime Minister in Manchester this week and appears to be a positive move to encourage the financial institutions to support firms to get the economy on the road to recovery. Where a small organisation has submitted their bill for work completed or goods supplied to a large organisation and have not been paid after the agreed final clearance date, they might well be concerned, especially if they have spent a fair amount of cash to the process and have bills of their own to pay. If the small organisation goes along to their bank, would this new move by the government have made the financial institutions more agreeable to lending, and sanctioned the small organisation to have a business loan? perhaps not, since they have not been given any official notification as yet and so cannot change their processes. This can leave the small organisation with some difficulty and make them evaluate their paths to encourage the large organisation to pay the outstanding bill, which might boil down to Debt Collection proceedings.
They might well consider that the typical Debt Collection services such as lawyers and Debt Collection Agencies can give might put them off, since lawyers and Debt Collection Agencies charge from 10% to 20% or more of the bill value. This might be acceptable, but if not then maybe the small organisation should widen their search and maybe look at Debt Collection software. For a spend of some
Tags: debt, debt advice, debt collection, Finance, finances