The world has changed and has changed once and for all. Businesses big and small seek ways to gain back control over their customer base, revenue and cash.
It was reasonable for utility providers to expect that more than 80% of all their bills to be paid in time by the customer. We estimate that this will drop to less than 50% in the coming months.
The credit needs of small and medium businesses are expected to grow exponentially in the coming months as they work to rebuild their business. However, the ability of the formal system to reach out, analyze financial history, open the line of credit and establish payments collection mechanism will be severely affected due to the shift in social norms and restrictions on physical outreach.
There will be a pressing need to introduce a highly automated, totally hands-off ecosystem to reach businesses, individuals in need across the cross sections of the society. The need to assess the financial credibility of the borrower as well as ensuring that the payments are made on time, all through remote means will grow significantly.
Automating the process of sales outreach, prospect analysis, service delivery and collection management will be mandatory for the very survival of service businesses.
Payments collection through electronic mandates ensures that the funds are collected directly from the customer’s account thorough pull mechanism on the due date.
The process of setting up payments mandates instantly, with authentication and authorization by the customer, with zero errors or failures all performed remotely and automatically means the service provider can feel safe about his collections and predict his cashflow among the toughest of economic situations.
While the market offers many modes of payments such as credit card, debit card, net banking and UPI based payments, all payments initiated by payer at his own discretion. The service provider will be at the mercy of the customer to realise his revenue and the cashflow prediction will suffer greatly. Shifting to the electronic Mandate mode of payments will put the businesses back in control of their receivables and cashflows.
If your business relies entirely on the customer to pay his dues voluntarily, then you must consider switching to mandate-based collection, where you can demand payment on specific date, re-attempt collection on a following date up on failure to pay. This could mean the crucial difference between growth and survival for your business.
Evolvus is a payment s modernization company committed to ensuring that financial institutions and their customers are able to stay current with business, regulation and technology changes across the payment’s ecosystem. Evolvus meets this challenge by focusing its investments in relevant domain and tech capabilities. This helps the firm deliver superior value for money through its IP led solutions.
The Flux payment s suite essentially delivers robust solutions for today’s needs while preparing the organization for tomorrow’s opportunities. This includes faster payments across diverse and complex technology architectures, standards, devices and disruptions.
To know more visit: https://www.evolvussolutions.com/e-mandate/
Balaji is the co-founder and Chief Executive Officer of Evolvus Solutions Pvt Ltd. He plays a critical role in anchoring strategic priorities for the company to gain leadership position in the payments domain.