A mid-sized industrial components manufacturer based in Pune, India, with annual revenue of ₹320 crore, faced increasing pressure on working capital. Despite strong sales growth, the company’s Days Sales Outstanding (DSO) had expanded from 62 days to 108 days over three years.

Delayed collections resulted in:

• Liquidity stress
• Increased reliance on working capital loans
• Rising finance costs
• Weak negotiation power with suppliers

The management engaged Finvigil Insights Pvt. Ltd. to implement a Receivables Optimization Program.

Key Issues Identified

Finvigil’s diagnostic review revealed several structural weaknesses:

1. Absence of a receivables monitoring framework
2. Unstructured credit approval process
3. Limited follow-up mechanisms for overdue accounts
4. High exposure to few large distributors
5. No early warning indicators

Finvigil Intervention Framework

Finvigil implemented a structured receivables management model built around four pillars:

Key tools deployed included:

• Receivables Aging Dashboard
• Collection Priority Matrix
• Customer Payment Behaviour Index

Results Achieved

Within 9 months, the company achieved measurable improvement.

Strategic Insight

Receivables management is not merely a finance function—it is a strategic capability linking sales growth with financial discipline.

Companies that actively manage receivables typically achieve:

• Higher liquidity resilience
• Lower borrowing costs
• Improved credit risk control