MSME'S (Micro Small & Medium Enterprises) are known for their significant contribution to the Indian economy. Despite being widely acknowledged for social and economic development, 90% of them are still facing financial difficulties, which has caused the majority of them to become reliant on their creditors.
India's largest B2B marketplace, which is known for empowering small businesses, manufacturers, retailers, and buyers by providing them with the necessary capital has been facing challenges in collecting debt from some of their customers.
One of the main challenges is that most of their customers are micro-enterprises with partial KYC information. The company attempted internal follow-up with customers, but they could not achieve the outcome as expected. The company was approached by Recordent, a technology platform that helps businesses improve their collections and reduces the risk by providing insights on the payment history of prospective customers.
After an extensive legal due diligence, the B2B marketplace has registered on Recordent and submitted dues of 3000+ micro-enterprises.
After submitting dues, Recordent's engagement platform started communicating with the micro enterprises regarding their pending dues through SMS, IVR, & eMail, and created awareness on maintaining positive payment track record. Recordent also initiated the telecalling process for these micro enterprises because the majority of them are not tech savvy. And through telecalling, not only created awareness on having positive payment history, but also gathered very critical insights on the reasons for non-payment of dues.
Insights gathered by Recordent have been communicated to the team at B2B marketplace on a weekly basis. The process also helped to collect PTPs (Promise To Pay) from micro enterprises.
The outcome for B2B marketplace is that it successfully collected some of their dues from micro enterprises within short period of 45days. Recordent also raised awareness among the customers on having positive payment history.
Most of the time, we try to make decisions solely based on one side of the coin. There's a lot more to it. Customers are frequently misunderstood for failing to pay their bills on time. However, there will be a story behind it. Let's take a look at how the Recordent has aided the B2B marketplace by communicating the scenarios listed below:
Finally, Recordent communication efforts have assisted the B2B marketplace in resolving issues with micro enterprises around collection of pending dues and helped in gathering critical on-ground feedback which can help improve processes in the future.