Debt Collection Shouldn’t be Complicated.
Australian small businesses are annually owed approximately $115 billion in outstanding invoices, with up to $9 billion remaining uncollected.*
*online sources not verified 11 March 2025
The Problem.
Small business owners face immense stress when dealing with unpaid invoices, often avoiding debt collection altogether due to fear of damaging relationships, legal uncertainty, or sheer overwhelm. With most small businesses needing debt recovery only once or twice a year with an average debtor amount of $8-30k, they lack a simple, supportive, and effective solution to reclaim what they're owed without added stress.
The Biggest 2025 Issues with Accounts & Debt Collection in Small Business:
Lack of Process & Systems
Many businesses don’t have automated invoicing, follow-ups, and/or clear escalation procedures, leading to inconsistent enforcement and cash flow issues.
2. Disconnect Between Contracts & Enforcement
Contracts and Terms&Conditions may be well-written but rarely enforced due to a gap between legal terms and practical collection methods. Businesses often lack a clear, actionable path from contract signing to debt recovery.
3. Negative Vibes & Avoidance
Many business owners avoid chasing payments out of fear of damaging relationships or appearing aggressive, allowing overdue invoices to pile up and become harder to collect.
Current Solutions by Others
| Company Name | Type of Service | Pricing Model | Pros | Cons | Ethical Practices | Best For |
|---|---|---|---|---|---|---|
| Prushka Fast Debt Recovery | Traditional Agency | Commission-based (~25% on $1k debt) | No upfront fees, accepts small debts, legal support | High commission for small debts, slow legal process | ACCC/ASIC compliant, fair recovery | Small businesses with small or large debts |
| Marshall Freeman Collections | Traditional Agency | Commission-based (5–30%) | SME-focused, high recovery rates, pre-collection tools | Commission-based, potential customer relations impact | Complies with fair debt collection guidelines | Routine overdue accounts, B2B debts |
| Stonegate Legal | Legal Firm | Fixed-fee per service | Lawyer-issued demand letters, no commission fees | Upfront legal fees, not ideal for very small debts | Professional legal standards, ACCC compliant | Large overdue accounts, legal escalations |
| LegalVision | Online Legal Service | Subscription or fixed-fee services | Fixed-price recovery, no commission, tech-driven legal service | Upfront costs, subscription only beneficial for frequent users | ACCC-compliant, focuses on legal compliance and fair collections | Businesses needing legal weight in collections, high-value debts |
| CreditorWatch Collect | Online Platform | Subscription-based ($89–$849/month) | Automates reminders, reduces manual workload | Monthly cost, relies on debtor cooperation | Fair communication, escalations handled by compliant agencies | Businesses managing many overdue invoices |
| ezyCollect | Online Platform | Subscription-based (~$125/month and up) | Automated reminders, credit risk checks, integrates with accounting systems | Monthly fee regardless of use, requires setup and training | Encourages fair and professional collections | Businesses with high invoice volumes, maintaining customer relationships |
Why these don’t work for small businesses:
No accountability from lawyers.
Involves a third party.
Too many options.
Too many unknowns.
What Needs to Change.
Debt collection is one of the most stressful aspects of running a small business. The emotional toll of chasing unpaid invoices, combined with the financial strain, can be overwhelming. Many small business owners avoid debt collection altogether because of the anxiety it creates, the fear of damaging client relationships, or simply not knowing where to start.
More Support is Needed
Many business owners could benefit from better guidance on how to prevent late payments in the first place (clearer payment terms, automated reminders, better contracts).
Education on stress-free debt recovery options would help—many don’t know their rights, legal options, or simple steps they can take without escalating things aggressively.
A "support network" for business owners dealing with debt collection could help, similar to legal aid but focused on ethical, low-stress collections.
Low-Frequency, High-Stress Problem
If most small businesses only need debt collection once or twice a year, that’s just enough for it to be a massive headache every time. It’s not a regular process, so they never get comfortable with it.
An easy-to-access service where a business owner can quickly improve collections could solve this gap.
A Smarter Approach to Collections
What if small businesses had access to a trusted, ethical, and AI-driven debt recovery process that removed the stress and handled things professionally?
The fear of damaging relationships is real—if collections could be framed in a gentler but firm way, it might encourage more small businesses to take action instead of suffering in silence.
The GetPaid.Ai Solution
You’ve done the work, you deserve to get paid. And we’re here to help make that happen
we’re not a debt collection agency or service. What we offer is a smart, AI-powered product designed to help businesses like yours take control of their cash flow—without the stress, confusion, or hidden costs.
One off AI Agent
Use our templates and AI agent to follow up debators.
Investment
Monthly payment. Cancel anytime.
Custom Built
We aren’t a debt collection agency - but we can build you the Ultimate in combining the power of AI, Automation with current Legal Advice.
Investment
One off set up fee + monthly/yearly subscription
The Debt Collection Process - Simplified
1. Early Stage: Pre-Collection & Payment Reminders
✅ Automated Invoice Reminders:
AI-driven email/SMS systems can send personalized reminders before the due date.
AI can optimize the best time to send reminders based on debtor behavior.
Example: AI tools like ezyCollect or CreditorWatch Collect automatically nudge clients.
✅ Chatbots for Payment Negotiation:
AI chatbots can interact with debtors 24/7 to answer questions, offer payment plans, or escalate unresolved cases to human agents.
Example: Conversational AI can detect sentiment and adjust messaging tone accordingly.
2. Mid-Stage: Soft Collections & Follow-Ups
✅ AI-Powered Voice Assistants & Call Automation:
AI voice agents can follow up with debtors, reducing manual call workloads for businesses.
AI can recognize excuses vs. genuine issues and adjust the response accordingly.
Example: Natural Language Processing (NLP) AI can detect if a debtor is in financial hardship and offer tailored solutions.
✅ Automated Dispute Resolution:
AI can categorize disputes (e.g., invoice errors, service dissatisfaction) and route them to the right department for resolution.
Machine learning can predict debtor behavior (e.g., likelihood of paying in full vs. needing installments).
3. Late-Stage: Escalation & Legal Action
✅ Automated Legal Document Generation:
AI can auto-generate Letters of Demand, Payment Agreements, or even court filings.
Tools similar to LegalVision AI can provide cost-effective legal automation without hiring a lawyer for every case.
✅ Smart Debt Collection Agencies:
AI can match the best collection strategy to a debtor profile (e.g., some people respond to emails, others to phone calls).
If legal action is needed, AI can auto-file documents to Small Claims Court with minimal human intervention.
Notes:
We don’t want to be a debt collection agency. This would require a lot of regulation and licensing. We however provide the tools and systems for businesses to have their own in-built debt collection agent.
Why do I need to engage a lawyer just to get money I’m already owed. Shouldn’t this be straight forward - if not where is the issue.
Work with specific industries (like that guy who just does law for health based businesses).
This would be more effective if the AI and we wrote the contracts/terms and conditions in the first place to keep it all systemised.
Need a central chat bot to help find information that is accurate - such as I’m owed 4000. Here is the contract - here is what I’ve done - This is the answer to your question.
Would need the business to prove they are human - contract is software (not debt collection agency).
I want people to be able to cancel anytime.
Questions:
What would it cost to set up a ai agent debt collector for different sized businesses. How much to keep running.
Can we set up an agent that does one off calls/emails/texts for businesses and would this be considered ‘in-house’ of them following up i.e. it would need to introduce itself as being from their company not ours.
If people cancel a subscription what is the tech’s cut off. Can it be anytime or are we going to be at a loss.
I want to create a demo so people can experience the service.
Main pain points to solve
Have a system for follow ups
Connect the T&Cs / contract with the follow up process
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