We can Fix the Hole in Your Cashflow!
We all know the impact of overdue debt on business cash flow and liquidity. It’s the no. 1 business killer. But do you really know the true cost of managing your accounts receivable?- Harvard Business Review, August 2009 edition
| Cost elements of overdue debtors | ||||
|---|---|---|---|---|
| Percentage carrying cost | ||||
| Cost of elements | 30 days | 60 days | 90 days | 120 days |
| Time | 0.82 | 1.63 | 2.44 | 3.22 |
| Administrative | 0.00 | 0.50 | 1.50 | 2.00 |
| Opportunity | 0.00 | 2.50 | 7.50 | 12.50 |
| Predictability | 0.00 | 1.00 | 1.00 | 1.00 |
| Predictability | 0.00 | 1.00 | 1.00 | 1.00 |
| Financing | 0.00 | 0.66 | 1.30 | 1.99 |
| Bad Debt | 1.00 | 4.00 | 6.00 | 10.00 |
| Total Cost | 1.82% | 10.29% | 19.74% | 30.71% |
| *as per HBR | ||||
"Having been a client of GGA for over 6 years, we have been extremely happy with their collection results, the cost of the service, and the standard of communication. I would highly recommend it to other businesses."
“Many of our clients are Government Entities and State Governments – we had a larger number of expired EMD’s and BG’s that had not been collected. We were not able to focus on their collections due to internal business issues. GGA collected 85% of the outstanding EMD’s and BG’s within 6 months and told us the exact reasons why the balance cannot be collected. We are truly grateful for their effort and support in liquidating the expired EMD’s and BG’s
“When we began with GGA, 25% of our receivables were over 60 days past due. Within 4 months, that number dropped below 10% and is currently under 5%. After 12 years, we consider them solid members of our company.”
“Managing our receivables internally was problematic due to our large range of dealers and distributors. With GGA’s experience, reach and expertise, their team was able to quickly mobilize, by putting in place telecallers and Feet on Street and bring down the debtors ageing quickly. They have built a discipline within our trade channel and they are the “go to’’ people to get our invoices quickly processed for payment.”
Take a look at the various resources we have at our disposal, thanks to our extensive business and debt collection experience throughout the decades.
GGA brings in the focus, momentum, and expertise necessary to guide the company's existing team towards the application of improved collection processes. With us, you gain many advantages, such as:
