The commercial public utility customers
The commercial sector is currently subject to extreme fluctuations. While certain sectors are booming, others are facing the effects of the pandemic. This makes it all the more important now to look deeper in B2B before signing a new contract. For example, the axytos platform allows cascading queries here as well, since the economic conditions of these customers can change very quickly.
Short contract terms require systematic checking
Customer behaviour is currently undergoing massive change. This is partly due to the pandemic and the resulting push in the digitalisation of many areas of life. But also in light of the share economy of the future, in which not everyone has to be an owner to be able to use something. There are already many of these contemporary, highly digitalised business models. Contract terms are getting shorter and shorter, mobile phone contracts, for example, can be reconfigured or cancelled monthly at the touch of a button. With the ‘Fair Consumer Contracts Act’, there is also a draft that ties contract terms of more than one year to additional conditions. But municipal utilities can also become much more flexible here, depending on how the grids develop in the future: in terms of tariffs, the adjustment of markdown payments, but also in terms of contract terms. “With these new types of small-scale and short-term contracts, reliable credit checks, address validation and fraud prevention systems are becoming increasingly important,” says Fait, “because an incorrect check in advance can lead to an immediate payment default that can no longer be compensated for over a longer contract term.”
How does the axytos platform fit into general receivables management and collection?
Those who take care of clean contracts in advance and significantly minimise the probability of default already in the application review process do not have to bother with open invoices and avoidable payment defaults at the other end of the customer financial lifecycle. “Holistic and sustainable receivables management starts with an optimal application review and ends with a customer-centric receivables management,” Michael Fait states.