When the World Gets Complicated, Who’s Watching Your Receivables? | By Andy Yiacoumi MCICM, Founder & Managing Director, CMS Credit Management Services LLC
Let me start with a blunt observation. Most businesses operating across the GCC and international markets are significantly better at winning new customers than they are at protecting the revenue those customers are supposed to generate. In stable times, that imbalance is manageable. In the environment we are...
Jun 12, 20265 min readReceivables, Risk Management, Credit Management
Receivables, UAE, Cash Flow
The Outsourcing Trap: Why Sending Your Receivables to an Offshore BPO Is Not the Cost Saving It Appears to Be
The trend of outsourcing collections to large process organisations is accelerating. The results tell a different story to the business case. The logic is seductive. A large receivables team is expensive. Salaries, benefits, management overhead, office space. The headcount required to run a meaningful collections operation — with...
Jun 11, 202610 min read
Credit Management, Cash Flow, Receivables, Business Intelligence
SMEs Default More Often Than Large Corporates
The UAE economy is dominated by SMEs — they make up 89% of all businesses and 63.5% of non‑oil GDP. But despite their importance, SMEs consistently show higher default risk than large corporates. This is due to structural differences in capital strength, cash‑flow stability, access to financing, and...
More Clients, Less Revenue. The Trap Nobody Talks About. CLIENT ACQUISITION & CREDIT RISK
There is a conversation happening in boardrooms and sales meetings across the GCC that I find deeply frustrating. It goes something like this: “We need more clients. More volume. More contracts signed.” The assumption baked into that thinking — that more clients automatically means more revenue — is...
Jun 11, 20265 min read
Business Intelligence, Training
Doing the Same Thing and Expecting a Different Outcome. Sound Familiar?
There is a quote attributed to Einstein — whether he actually said it is debated, but the truth of it is not — that defines insanity as doing the same thing over and over and expecting a different result. It is quoted endlessly in business contexts. In leadership...
Jun 9, 20269 min read
Cash Flow, UAE, Credit Policy
Why B2B Companies in the GCC Can’t Afford to Ignore Credit Policy
The data is clear: poor credit management is costing GCC businesses millions — and formal credit policies are the fix.
Cash flow is the lifeblood of every business. Yet across the GCC, a surprising number of companies — from established corporates to ambitious SMEs — are extending trade credit to customers without a formal credit policy in place. No defined credit limits. No structured approval process. No consistent payment terms. Just trust, relationships, and optimism.
The Transient Nature of the UAE Market — And Why Your Business Needs to Be Protected
The UAE is one of the most dynamic business environments in the world. Its openness, its tax advantages, and its position as a regional hub attract entrepreneurs, traders and professionals from every corner of the globe. That diversity is one of its greatest strengths.
May 5, 20264 min read
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Large corporates: Structured governance, audited financials, compliance systems.
Pattern: SMEs default more due to operational weaknesses, not just financial ones.
5. Sector Exposure
SMEs are heavily concentrated in:
Retail
F&B
Construction subcontracting
Small logistics operations
These sectors are more sensitive to economic cycles, increasing SME default probability.
Large corporates operate in:
Energy
Infrastructure
Banking
Telecom
Large‑scale logistics
These sectors have lower default volatility.
How Banks in the UAE Rate SME vs. Corporate Risk
Sources: UAE SME ecosystem data.
Key Insight
SMEs don’t default because they are “bad businesses.” They default because they are fragile businesses — highly exposed to cash‑flow shocks, customer delays, and financing constraints.
Large corporates default less often because they have:
Better capital
Better governance
Better access to credit
Better diversification
If you are an SME and want to improve your business cashflow and business stability, then contact the GCC specialist in the 'Order to Cash' process, CMS Credit Management Services.
