Services
CREDIT REFERENCING & SCORE CARDING
A Thoroughly “Synapsed Referencing” is translated into a “Scoring Card” Mechanism
These Derived Metrics (via RATIO and other Para Legal Analysis) are then aggregated to a Profile CREDIT Score
The Score is indicative of a Assigned CREDIT – in TENOR and VALUE
The VALUE is DRILLED down into GREEN, YELLOW and RED Timelines for ascertaining CREDIT DICIPLINE / DELINQUENCY
COLLECTIONs Management - Both DOMESTIC & INTERNATIONAL
When we have a Good Process in place for Knowing our Customers / Clients then we generally tend to have a Manageable A.R ::
Yet, with Growing Business Needs, we might have to relax the CREDIT POLICY
With this Relaxation Comes an Additional INPUT of “A.R Surveillance”
A.R Surveillance should be @ Regular Periods with ALL STAKEHOLDERs
DICIPILNE in ToP has to be Maintained to ensure a LEAN A.R
Risk Mitigation via TRADE CREDIT INSURANCE
Today; in most Enterprises the “Bad Debts” written off / The charge on P&L ranges anywhere between 2% to 4% of Gross Turnover
Taking up a TRADE CREDIT Insurance; covers this LOSS; and this for just 0.40% of Turnover!
The Cash Flows will improve as we don’t have the debt to get delinquent and these debts can be converted very early on in the Collection Cycle by Banking TOOL of :: FACTORING
The added advantage is that the insurance company will have a detailed credit assessment done on the prospective customer and the credit risk will be in lines with the market dynamics
Collection & BANKING Tools - CHANNEL FINANCING
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MIS Dash Boards for the CXO Suite
Revolving DSO (7 Customised / Relevant Methods)
Collections and DSO TARGET Monitoring – Intra Day
CCC
Collections Efficiency
Contribution Levels
BUDGET Based Collections Target Setting and INTRA DAY Monitoring
BAD DEBTs and CHARGE Monitoring
PRE BID TENDERs :: Status and ON GOING TENDERs – Status – C/F Position
TREASURY Reports :: FOREX – Contracts (Exposure and Covers / HEDGEs)
WORKING CAPITAL :: DAY SCOREs
TRAINING - "CASH before YOU CRACK"
Reading and Interpretation of Financial Statements
Understanding Ratios and Interpreting them
The Importance and Criticality of TENDER Vetting and TERM SHEETING
PROS and CONS of KYC, Customer Profiling, CREDIT Limits Setting
Collections Techniques and Best Practices
Financial Discipline and Effective Communication
Dunning Systems
How to get DEBTs Insured and Factored
Excel and MS Projects as a Tool to MAP Time Lines with Billing Mile Stones
Negotiating a TOUGH and IRATE Customer and getting our STUCK Payments from them
LEGAL Coursing
Prospective Client / CUSTOMER PROFILING
Complete KYC Induction of the Prospective Customer via an Evolved-Evolving Template.
Face to Face Interaction with the Prospect
Trade Reference and Market Information on the Prospect,
Historical Business / Financial / Legal TRAIL
Visit @ the Prospective Customer’s Premises
Prospect’s Bankers Reference
TENDER VETTING & Term Sheeting
A Tender is a Prospective Contract in the DRAFT Mode
A Tender Carries - Commercial, TAX, PRICE and Profit Implications
A Tender is usually Biased to Safe Guard the Customer’s interests via this DRAFT Tender Contract
​WE have to RIP (Read in Particular) the Tender; to Ascertain the Areas that pose FINANCIAL and TECHNICAL RISKs / Disadvantages / Threats to us whilst we Execute this Prospective Tender
These RISKs needs to be Tabulated and shared with the TENDER COMMITTEE for its Deliberation and Authorization as per LoA
RISK MITIGATION Techniques, Tools and Processes needs to be implemented as a HEDGE
All Complex Tenders, FIDIC Tenders, Large Government Tenders come with Multiple Legal, Financial and Engineering Clauses that bear great implication on the Cost of the Project and the Profit Margin at the end of the Project
Particularly when the Project is spread across Multiple Years and there are Imported Raw Materials involved which has bearing on the Exchange Gain / Loss on Foreign Currency
The Appropriate Mile Stone Billing with Proportionate BoM
Dunning on Running Bills (R/A Bills)
Compliance on Tender Requirements – Highlights and Monitoring
PROTRACTED A.R Collections - Both Domestic and International
Our Standard Premise being - ALL Debts are Collectable
We interact with the Customer and Understand the Basic Reason for their Delay in Payment
We Correct our Mistakes (if there are) or Resolve Issues that pertain to our LACK
We Engage the DECISION Makers (CxOs) @ the Customer for Quick Release of Payments
We Educate the Customer on Betterment of their WC Management
We Constantly Engage the Customer via IT Tools for them to be aware of the LEGAL implications of not having paid the DEBT on Time
We have interacted with 3,000 + Protracted Customers and have had almost 100% Success Rate
We ensure that the Best Practices of Credit Management is employed through Appropriate Credit Policy, SoP and Procedures so that PROTRACTED DEBTs are a HISTORY!
Collection & BANKING Tools – FACTORING
There are various banks today in India offering this product
The Banks provide funding upto 90% of the invoice value
The client may have to sign an agreement with the bank were the unpaid debts get subrogated to the bank post the credit period
The prevailing rate is 10%
This rate will go down as much as 8.50 % if our debts are insured
In case the debts are insured the factoring is done without recourse.
Collection & BANKING Tools - E- Payment Gateway/s
The BANK’s Server vide its Software is Synchronized with our AR & AP LEDGERs
Virtual and Unique ERP Customer Codes are Generated
The Gateway Reference is shared with the Customer
The LEDGER (Open Items) is available for the Customer to Review and Pay
Once the Identified & Selected OPEN ITEMS are Paid…ONLINE
The Bank Server Uploads these payments as Receipts into our ERP (SAP)
The Auto Run ADF ensures Cash Application is done without human intervention
Thereby, Reducing the Possibility for LEDGER errors, RECONCILATIONs & Excuses for delayed payments…
LEGAL Engagement for DELINQUENCY Mgmt. (Dom. & Overseas)
Delinquency Management ::
Cheque Bouncing (Return) under Sec 138 of the Negotiable Instruments Act
Summary Suits
Winding Up Petition
Out of Court Settlements
Insurance Claims
