SME creditors face the same recovery challenges as large corporates, but with far less internal capacity to run a proper dunning process before a debt goes stale.
A small business rarely has a dedicated AR collections function, so reminder emails and calls tend to stop after one or two attempts, right when consistent follow-up would matter most.
Contingency-based agency fees are set as a percentage of what is recovered, which means an SME with a single overdue invoice pays proportionally the same rate as a large enterprise with a full portfolio.
Late payment legislation in most jurisdictions entitles a creditor to statutory interest and recovery costs automatically, yet SME creditors rarely claim it because they are not aware the right exists.
Everything covered in this video, in full written form, in the complete article.
Read the full guideSmall business debt collection guide: in-house dunning, agency fees, statutory interest, and cross-border recovery for SME creditors. Free case review.