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Introducing PAYGO Lab
Solving off-grid solar's credit crises
An innovation of
PAYGo companies collect an average of 62 cents of every dollar owed to them each month.
New industry data quantifies the scale of its credit management crisis. This fact validates deep concerns held by entrepreneurs and their investors regarding business viability.
This statistic is further exacerbated by strikingly high write offs and self-reported levels of ‘receivables-at-risk’
Implications for stakeholders:
For customers: dissatisfaction, overindebtedness, loss of access to electricity, and financial losses once in default
For companies: delayed and/or missed payments strain PAYGo company balance sheets, can force bankruptcy
For investors: increasing their risk premiums, or backing out altogether
The parallel root causes for PAYGo industry; PAYGo Lab’s tailored solutions
Why is the industry facing this crisis?
How does PAYGo Lab address the challenges?
Lack of credit management capacity
Companies lack a credit management culture; focus on sales with weak/no client credit screening; push staff on short term collections rather than prevention and solving root causes of delayed/non payment
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Lack of credit management capacity
Companies lack a credit management culture; focus on sales with weak/no client credit screening; push staff on short term collections rather than prevention and solving root causes of delayed/non payment
Diagnostics
Proprietary dashboard and algorithms - alongside new metrics - to understand root causes of credit management challenges, and develop a comprehensive, actionable plan
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Building Credit Capacity
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Monitoring and Reporting
Work directly with companies to build systems, tools and capabilities to sustainably manage a portfolio at scale, including the design of a self-learning customer credit scoring tool
Independent rigorous portfolio monitoring based on raw data to measure the health of the portfolio and provide early warning signals, allowing for timely corrective action
PAYGo Lab’s approach in action
Our team has supported locally-owned and -managed Zuwa Energy in Malawi over the past 18 months.
Zuwa has more than doubled its collection rate, and is a top performer across the entire PAYGo industry
0% write off rate for customers onboarded after rollout of PAYGo Lab client screening method
Lab credit metrics allow leadership to identify trends in client screening quality within days
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PAYGo Lab is a game-changing innovation for the off-grid solar industry
Our Ambition: demonstrate that PAYGo is bankable. The proof will be in customers who can and do pay, on time, and companies who turn a profit and generate a return for their investors
How we will get there: in 2023, we want to support 20 companies via the Lab, with each showing quantifiable, demonstrable improvements in their portfolio within 6 months
How you can get involved: identify companies that need Lab support; provide resources for the Lab to engage with them
Interested in partnering or learning more? Please contact: