How Segura helps reduce payment defaults through its advanced customer risk identification

Impact of Payment Defaults on Business

• A cash flow crisis is one of the most immediate impacts of payment defaults. Without the necessary cash in hand, businesses may struggle to pay their own bills and meet their financial obligations, which can result in late fees, penalties, and even legal action in extreme cases. This can damage the reputation of the business and impact its ability to secure future financing or credit
• Payment defaults can also result in decreased profitability for businesses. Without timely payments, businesses may have to resort to collection agencies or legal action to recover the funds owed. This can be a costly and time-consuming process, which can further reduce the amount of revenue that the business is able to generate
• Payment defaults can negatively impact the customer relationship. If a customer repeatedly fails to pay their bills on time or defaults on their payments, it can damage the trust and goodwill that the business has built with them. This can result in a loss of business in the long run, as customers may choose to take their business elsewhere

Challenges of Customer Risk Identification

• Data Quality: Customer risk identification relies on accurate and comprehensive data. Businesses may face challenges in accessing and analyzing the necessary data to generate a comprehensive risk profile for each customer
• Privacy Concerns: The use of customer data for risk identification purposes can raise privacy concerns among customers. Businesses must ensure that they are complying with relevant data protection regulations and implementing appropriate data security measures

Benefits of Customer Risk Identification

• Reduced Payment Defaults: By identifying customers at risk of default and taking proactive measures to address the risk, businesses can significantly reduce the incidence of payment defaults.
• Improved Cash Flow: Payment defaults can cause cash flow problems for businesses, particularly for small and medium-sized enterprises (SMEs). By reducing payment defaults, businesses can improve their cash flow and financial stability.
• Better Customer Relationships: By identifying and addressing customer risk factors, businesses can improve their relationships with customers and build trust.

Using Segura for Customer Risk Identification

How Customer Risk Identification helps Reduce Payment Defaults

• Risk Assessment: Segura’s risk assessment feature allows businesses to identify high-risk customers by analyzing their payment behavior, financial history, and other relevant data. With this feature, businesses make informed decisions about extending credit to customers and reduce the risk of payment defaults
• Early Warning System: The early warning system for customer risks feature alerts businesses when a customer’s payment behavior changes. For example, if a customer who usually pays on time starts missing payments or pays late, the system will alert the business. This helps businesses take proactive measures to avoid payment defaults
• Credit Monitoring: With credit monitoring, businesses can keep track of their customers’ credit scores and credit histories, thereby identifying customers who may be at risk of defaulting on payments and taking appropriate measures
• Payment Reminders: Segura’s payment reminder feature sends automated payment reminders to customers who have overdue payments creating a provision for businesses to collect payments on time and reduce the risk of payment defaults