Collections Optimization – WaterPump Manufacturers
40% of outstanding invoices collected within 60 days
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
- 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.
- 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