40% of outstanding invoices collected within 60 days
Challenge
A company trading in pumps was staring at a mountain of overdue invoices as customers weren’t paying on time. These issues with cash flow was restricting the company’s growth plans
Solution
Structure approach to collection of outstanding debt.
Dedicated resources appointed to handle collections.
Tracking mechanism implemented to measure collections on a daily basis. Invoice level payment tracking initiated.
Sales and Collections teams together made accountable for clearing outstanding invoices.
Customers categorized on basis of their payment history and customer category introduced as a checkpoint for all new orders.
Benefits
Outstanding invoices worth ₹ 30 lakhs collected within 45 days of implementing new approach.
40% of outstanding invoices collected within 60 days of implementation with collections worth ₹ 44 lakhs