Reduction in Debtors as % of Sales

Cashflow can significantly be enhanced if the amounts owing to a business are collected faster. Slow collections have a crippling effect on the business. Every business needs to know - who owes them money, how much is owed, how long it is owing, for what it is owed and importantly – WHEN WILL THEY GET PAID and if the customer has “no intention to pay” OR ‘’no ability to pay”

Improvement Areas Actions Results
i. Reduction in Debtors Timeliness / Completeness / Accuracy of invoicing Better collection processes and discipline
ii. Collection of debtors rolling into the next ageing bucket Regular updation and circulation of Pricing Masters Operating cash flow increased
iii. Collections of aged debtors Identification and focus on customer payment history and reasons for delayed payments Reduction in DSO
Reasons of bad debts / write offs Reasons of bad debts / write offs Reduction in losses on receivables through
Deductions Management Reduced interest payments
Documentation of customer terms
Better customer credit management
Collections of overdue debts
Identification and quicker resolution of disputes