So, I invest/lend 100. The SME fails. Who is persecuting them? I don't want to chase each failed SME to get the money back.

I mean, you still need middle men. Nobody has willing, knowledge or time to rate, follow and persecute a bunch of SME's.

I would love laws and tools to lend to companies I know well although. Like companies of friends or friends of friends. But that is impossible now. Another big topic is discounting invoices, somebody here? Interesting topic with real hassle.