A Nairobi-based startup has launched a digital system aimed at stopping perennial defaulters who have a long trail of unpaid bills and invoices.
Evasion Network, which was founded in 2017, trails serial defaulters of bills and invoices and share information among traders.
“The impact of bad debts is not good for any business. If a business has astronomical bad debt levels, then it really needs to take quick action and ensure the accounts receivable process is being managed properly,” says Donald Anditi, founder and CEO.
“The issue of failure to pay suppliers and settle financial and contractual dues has become an albatross around the economy’s neck.”
Evasion, he notes, is a system “that bridges the gap that has for a long time been exploited by dodgers, who have thrived in the absence of information sharing mechanism between sectors of the economy”.
The budding techpreneur says through the system companies, businesses, NGOs and Saccos will not only list firms that have evaded and declined to pay bills and honour invoices, they are also able to get data on corporates listed on the system by registering and login on to www.evasion.co.ke.
Mr Anditi, a finance and banking graduate from Moi University, founded the platform with Ngigi Nyoro, computer science graduate from Chuka University.
Mr Anditi notes that the system also helps in reducing risks, enhancing business relations, debt recovery as well as in dispute resolution.
“Before data is uploaded into the system, it goes through several levels of scrutiny,” he says.
“In the corporate world, no company would want its history of default exposed. Therefore, a company listed on Evasion will work to repay the outstanding balance to ensure the company details are struck off the system.”
The techpreneur says the Evasion Network also seeks external services from institutions such as Chartered Institute of Arbitration to assist in resolving disputes.
“A company’s default history (scorecard) is compiled to assist prospective business associates make decision on the terms and rules of engagement,” he says.
“The paramount objective of the platform is to ensure that every business trades with integrity, improve trade relations, be risk averse, make sound business decisions and, more importantly repossesses what is rightfully theirs.”