In early 2023, a global dark web and cyber intelligence company provided subscription-based access to a UK enterprise risk intelligence platform. Under a rolling six-month SaaS contract, the client delivered continuous access to threat intelligence tools—an essential service for any company dealing in cybersecurity and risk. However, despite uninterrupted access, the customer failed to pay for two consecutive subscription periods totalling $25,000.
While this situation was eventually resolved through staged payments, it serves as a clear reminder: this issue should never have reached the point of debt recovery. With proper due diligence, contract oversight, and payment monitoring, the risk could have been identified—and neutralised—much earlier.
When Due Diligence Is Missing, Payment Risk Grows
The risk intelligence buyer entered into an agreement without upfront verification of the client’s financial stability, payment behaviour, or internal approval protocols. Without insight into their ability to honour renewal clauses, a critical risk was overlooked.
Had Vendsafe Global conducted a comprehensive commercial due diligence check at the contract negotiation stage, our client would have had a clearer picture of the counterparty’s credit profile, legal exposure, and payment history. This information would have flagged potential delays or defaults, enabling better contract terms—or avoiding the deal altogether.
Contract Clauses Alone Don’t Guarantee Payment
The SaaS subscription included automatic six-month renewals, a common clause in recurring B2B agreements. Yet, the vendor continued to deliver services for 12 months while invoices went unpaid.
With Vendsafe’s Contract Risk Management services, critical triggers—like auto-renewals, non-payment thresholds, and customer silence—can be actively monitored. This ensures overdue accounts don’t slip through unnoticed, and clients can intervene before risk escalates.
The Cost of Playing Catch-Up
By the time debt recovery began, the situation had become a months-long pursuit. Despite acknowledging the debt, the client delayed payments using vague excuses tied to future funding and onboarding issues. Eventually, they made six partial payments over three months—starting in July and concluding in October 2024.
While our client avoided court proceedings, they still endured cash flow pressure, operational distraction, and reputational risk. And although the full interest and penalty fees weren’t enforced, the time and cost of recovery could have been avoided entirely with proactive safeguards.
Proactive Risk Services Protect Profit Margins
This situation exemplifies a common pain point for SaaS providers and subscription-based B2B businesses: delivery continues, but payment doesn’t. These issues stem not from technical breakdowns, but from blind spots in business process risk.
At Vendsafe Global, we help you eliminate those blind spots. Our full-service approach combines:
- Company Due Diligence before signing any B2B deal
- Contract Review & Risk Management to align renewal terms with enforceable protection
- Ongoing Payment Monitoring so you’re alerted the moment payment patterns shift
