Overdue Invoices Collections and reduction in debtors

Cash stuck with customers > 60 days from due date due to the following problems:

  • Invoicing inefficiencies
  • Invoice receipt & accounting inefficiencies
  • Collections process follow up inefficiencies
  • Time, process & patience to follow up with delinquent customers

Cash is trapped because of above reasons and leads to high DSO & debtors ageing - GGA has a solution to assist with trapped cash

 Receivables   Values in INR
 Name 1   Total O/S  1-30   31-60  61-90  91-120  121-180  >180   Average Sales/Month 
 Customer A  2,225 234 1,233 758 -  -  - 1,500
 Customer B  2,377 868 564 289 656  -  - 1,500
 Customer C  2,237 423 855 - 959  -  -  200
 Customer D  6,246 768 3,498 1,980 -  -  -  600
 Customer E  1,379 555 288 156 380  -  -  300
 Customer F  46,800 25,604 2,588 9,843 1,312 7,364 90 30,000
 Customer G  6,017  2,986 1,498 1,533 -  -  - 2,000
 Customer H  4,152 556 3,561 35 -  -  -  700
 Customer I  1,257 580 - 677 -  -  - 1,000
 Customer J  7,076 465 1,776 89 1,329 1,760 1,656 1,000
 Customer K  2,141  1,042 987 112 -  -  - 1,000
 Customer L  7,600  4,687 2,913 - -  -  - 4,000
 Customer M  5,562  5,562 - - -  -  - 1,000
 Customer N   203 89 114 - -  -  - 1,500
 All India  95,272 44,420 19,874 15,472 4,636 9,124 1,746 46,300
    47% 21% 16% 5% 10% 2%  
64,294 30,978 30,977,719
 15 % interest pa  4,647 4,646,658

GGA works with corporate and assists them in reducing debtors from ageing buckets where there is lack of focus from the sales and operations team – i.e. money in the 90 + bands and deductions by companies that have built up over a period of time.

Most sales and operations team focus on collecting the easy money and do not expend energy and time on the money that has got trapped due to lack of attention, small and non noticeable amounts, lack of follow up etc.

GGA follows up with their clients customers – telephonically, by email and personal visits and requests them to explain why the invoices are still unpaid, after understanding the reason, GGA works both internally at the client end and externally at the customer end to reduce debtors, unlock frozen cash flow, cure chronic backlogs, and recover hidden profits by reconciling accounts, resolving disputed accounts receivable and customer deductions for returns, trade promotions, charge backs, etc