Prediction of payment failures

Challenge

Payment defaults by customers not only result in lost revenue, but even in direct losses, as advance payments are not made. The classification of customers into corresponding rating classes is mostly based on external data sources and only leads to limited success.

 

The approach

Based on the historical invoice and master data, a payment profile is created for each customer and an algorithm is used to predict whether payment default will occur within the freely defined period. Based on this model, the required securities, payment methods, etc. of the customer are optimized to then calculate the statistically determined risk.

By using the biX AI Tools, the solution approach can be fully integrated into your SAP system.

 

Your benefit

The risk of payment defaults is noticeably reduced, and direct losses can be avoided. In addition, the system provides a customer rating that can be checked and traced by the finance department and auditors/regulators.

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