Transforming Telecom Collections for UK SMEs: The Pega & Eclantiqx Advantage
Empowering Small and Medium-sized Enterprises to Thrive
In the fast-evolving UK telecommunications sector, collections management for Small and Medium-sized Enterprises (SMEs) is more than a financial transaction—it’s a lifeline for companies working tirelessly to stay afloat. Unlike individual consumers, SMEs face unique pressures: fluctuating cash flow, late client payments, and economic headwinds that can make it difficult to meet their financial obligations on time. For telecom providers, how they approach collections can either reinforce client loyalty or add to the burdens that SMEs already face.
The Hidden Costs of Outdated Collections for SMEs
Many UK telecom providers working with SMEs still rely on legacy collections processes that are slow, inflexible, and disconnected from the realities of running a growing business. The stakes are high:
Cash Flow Strain: According to the Federation of Small Businesses (FSB), 52% of UK small businesses experienced late payment issues in 2023, with cash flow disruption being one of the top causes of business failure1.
Financial Losses: The telecom industry sees customer bad debt accounting for up to 2% of total revenue2. For SMEs, these losses can be the difference between solvency and insolvency.
Escalated Recovery Costs: About 50% of companies eventually resort to third party debt recovery, further eroding profits and sometimes endangering valuable business relationships3.
Customer Churn: SMEs that feel pressured or treated unfairly during collections are six times more likely to switch providers than those with positive payment experiences4.
Digital Disconnect: While 76% of telecom business customers expect seamless digital service journeys, many collections practices remain manual and difficult to access, resulting in frustration and missed opportunities for resolution5.
The numbers reveal a clear need for collections processes that are empathetic, proactive, and tailored to the realities of small business finance.
The Transformative Power of Pega Collections & Eclantiqx
Enter Pega Collections—powered by advanced AI—and Eclantiqx’s specialised consulting for collections in the SME telecom space. This partnership reimagines collections as a customer-centric, digital-first experience designed to help struggling SMEs recover and thrive, not just to recover debts.
Automated, Flexible Workflows: Pega Collections leverages AI to create automated workflows that adapt to the ebb and flow of SME cash cycles. For example, payment reminders and recovery strategies can be intelligently timed to support SMEs through seasonal downturns or unexpected setbacks, reducing the risk of business closure.
Omni-Channel, Business-Centric Engagement: SMEs can engage on their terms— email, SMS, digital portals, or voice—empowering business owners to take control of their payment plans and communicate challenges before issues escalate
Regulatory Compliance Built for Business: With Eclantiqx’s deep understanding of the UK’s regulatory framework, telecoms organisations can ensure that collections practices both meet legal standards and treat SME clients fairly, supporting their right to negotiate and seek flexible solutions
Proactive Identification of At-Risk Businesses: Leveraging analytics, the platform can identify SMEs showing early signs of cash flow distress—such as increasing days sales outstanding or patterns of late payment—and intervene with support, not sanctions
Data-Driven Optimisation: By analysing business payment behaviours and external economic indicators, telecom providers can tailor their outreach and support to the specific needs of each SME, resulting in more successful recoveries and longer-term relationships (McKinsey & Company, 2023)
Beyond Debt: Supporting the UK’s Business Backbone
Reimagining collections for SMEs is not simply about recovering outstanding payments—it’s about recognising that every company behind an overdue invoice is a contributor to the UK’s economic health. By providing a transparent, flexible, and humane collections experience, telecom companies can forge loyal partnerships with SMEs, reduce churn, and ultimately play a part in their clients’ recovery and growth.
In a market where business resilience is paramount, investing in modern, intelligent collections technology is more than a strategic move—it’s a vote of confidence in the UK’s vibrant SME community.
Want to find out more? Please reach out to Kathryn McGlynn Kathryn.mcglynn@pega.com or Lee Runciman lee.runciman@eclatprime.com to set up a call.
About the Author – Lee Runciman
With extensive experience leading digital transformation and intelligent automation initiatives, Lee has driven successful outcomes for some of the world’s largest organisations in the Financial Services, Insurance, and Utilities sectors. Lee brings deep domain expertise across a diverse range of applications—including Collections, CLM/KYC, Customer Service, Payments Investigations, Disputes and Chargebacks, Financial Crime, Asset Management, and international trade settlement systems. Lee’s passion for innovation continues to shape transformative solutions and deliver meaningful results for clients worldwide.
References
1. Federation of Small Businesses (FSB), 2023 2. Deloitte, 2022 3. Credit Connect, 2022 4. PwC, 2021 5. Ofcom Business Communications Market Review, 2023
