Where a organisation has completed a project for another organisation and has had the job signed off by the Project Manager and then sent in their account only to later find out that the final date for payment has passed and payment has not been collected, and they have not paid despite several phone calls.
If the organisation carrying out the work is small then they may have employed sub-contractors to take on key elements of the project, and these workers will then find themselves in a chain of payment. Each of the parties concerned may have worked together frequently and rely on this carefully formed working relationship to bring in a steady flow of business, so the last thing any of them wants to do is send bailiffs into the organisation which had the project work done in the first place.
The case of what is essentially the main contractor, which is the organisation that employed the sub-contractors, is one where they need to lead the Debt Collection process but in a way that has the least damaging effect on the working relationship they have both ways.
The sub-contract organisation can only really pursue the main contractor, but as they hopefully have been kept up to speed with the payment problems from the client organisation, it is in their interests to work alongside the main contractor rather than pursue them.
The main contractor may well have limited resources with which to manage this problem, not the least of which being money, so they would need to look for the most economic strategy that has a probable chance of concluding the Debt Collection process to a agreeable conclusion for all parties. At this time there seem to be three paths that can be taken to take care of this: Debt Collection agencies, the legal system, and the Do It Yourself approach. Each of these paths has pros and cons that should all be thought through before making the choice.
Each option offers different degrees of service at commensurate cost, ranging from the DIY option needing local resource to execute the process, then the Debt Collection company and finally the legal system where the solicitor can handle the process with minimum time from the client.
The DIY option needs to consist of a suitable package of Debt Collection Software and a fully documented manual on how the Debt Collection method works, how to work the Debt Collection Software, in particular how to compose Debt Collection Letters, which are the documents that will be posted to the client organisation.
These Debt Collection Letters are key to the process so must be checked carefully before beinbg despatched. The Debt Collection Software would also have the capacity to gather user input such as logging activities such as Debt Collection Letters being sent out, letters being received and then the capacity to attach a scanned pdf file.
The final result would be a system that would record including date & time stamp the activities that took place through the Debt Collection operation and could generate a hard copy so that it could be passed over to a Debt Collection company or a solicitor, should this be required. The price of the Debt Collection Software and documentation is likely to be less than.