In late 2022, a UK-based construction subcontractor delivered a high-value structural installation for an IT campus in the UAE. The project was completed on time and to spec. The final invoice amounting to $500,000 was issued promptly.
What followed, however, wasn’t a smooth payment process. It was silence, evasion, and delay. Reassurances from the client quickly faded into non-responsiveness. Calls went unanswered. Legal efforts abroad proved expensive and unproductive. The contractor was caught in a sticky situation: a completed job in a foreign jurisdiction, with no leverage once the work was done.
The Red Flags That Were Missed
From the outside, the debtor appeared to be a credible business. But beneath the surface, there were tell-tale signs: vague payment excuses, operational opacity, and a calculated attempt to let time bury the problem. It wasn’t a case of a client struggling financially. It was a deliberate delay tactic to wear down the creditor’s resolve.
This kind of behaviour isn’t uncommon in international B2B transactions. But what many companies don’t realise is that these risks can often be avoided before they ever become a recovery issue. And that’s exactly where VendSafe Global comes in.
How VendSafe Could Have Prevented the Problem
This wasn’t just a debt recovery issue. It was a contract and compliance oversight that could have been intercepted far earlier with VendSafe’s three-layer service:
1. Due Diligence That Goes Deeper
Before contracts are signed, VendSafe conducts deep due diligence—not just on company credit scores but on leadership structures, payment performance, and local business practices. If this had been applied in the UAE case, early warning signs would have been identified, such as inconsistent payment histories and unresolved disputes in the region.
2. Jurisdictional Contract Structuring
International contracts are only as strong as their enforceability. VendSafe works with clients to ensure that cross-border agreements are clear, watertight, and backed by jurisdictional logic. That includes defining escalation points, legal standing, and real-world consequences for late or missing payments. In this case, a stronger contract backed by enforceable terms would have changed the entire dynamic.
3. Outsourced AR for Strategic Intervention
Even if payment delay did occur, VendSafe’s outsourced AR service could have isolated the problem early. Intervening on just the at-risk account without disrupting broader cash flow operations. Strategic communications, backed by local insight and commercial leverage, would have cut through the avoidance much earlier.
Recovery Shouldn’t Have Been Necessary
Eventually, the subcontractor turned to our sister company, Payfor Global, for help. Payfor mapped the communication trail, analysed the contract, and initiated a high-pressure 30-day Chase Campaign. Within weeks, the debtor re-engaged. A full settlement, including interest, was reached within 21 days without going to court.
Yes, the outcome was a win. But the reality is, this debt should never have reached that point. The cost in time, stress, and delayed capital was entirely avoidable.
Prevention Isn’t a Luxury, It’s a Business Strategy
Bad debts aren’t just financial risks they’re symptoms of broken processes. And in the world of global B2B trade, prevention is far more powerful than cure.
At VendSafe Global, we help businesses trade smarter. From due diligence and pre-contract analysis to ongoing AR support, our full-circle service ensures you’re protected at every stage of the client lifecycle. You don’t need to recover debts if they’re structurally avoided in the first place.
Make prevention your competitive advantage. Speak to us today!
