Illustrative scenario · Distributor · Customers and the sales team
Sales are up. Why is the overdraft up too?
About ₹42 lakh a year on unpriced creditIllustrative
Not a client. A worked example of the method, with stated assumptions and public benchmarks. No result is claimed.
The business
A building-materials and electricals distributor. About ₹30 crore a year, 600 retailers and 8 salesmen. Orders come by phone and WhatsApp. Tally holds bill-wise details.
The owner's question
“Sales are up. Why is the overdraft up too?”
What's already in the records
- Tally vouchers with bill-wise allocation
- Salesman and beat masters
- Scheme and claim records from principals
- Purchase vouchers
- GSTR-2B
- WhatsApp order groups
What I'd join
- Bill-wise sales against receipts. This gives actual credit days by retailer, salesman and beat.
- Each salesman's billing against his collections. This shows who sells, and who sells and collects.
- Each retailer's invoice history. This shows ordering intervals stretching before a retailer stops buying.
- Claims raised against claims settled by principals. This shows money still owed to you.
- Purchase vouchers against GSTR-2B. This shows suppliers whose invoices aren't showing up for credit.
What it could show, worked through
Credit. Payments to Indian SMEs average 73 days, though most invoices carry terms of 30 days or less. That figure is a collections company's 2026 data on about 1.1 lakh MSMEs. At ₹30 crore a year, 43 days of unpriced credit ties up about ₹3.5 crore, which costs about ₹42 lakh a year at 12%.
about ₹42 lakh a year at 12%
GST credit. A mismatch between the credit claimed in GSTR-3B and what GSTR-2B shows can trigger a DRC-01C notice. Not responding blocks GSTR-1 filing.
a DRC-01C notice, before it arrives
Why it isn't obvious
The overdraft is the sum of hundreds of small credit decisions made by salesmen, and no report shows them together.
The decisions it opens
- Set credit limits by retailer.
- Pay incentives on collections as well as billing.
- Call this week the retailers who are drifting.
- Chase principals' claims.
What you'd get
- Diagnostic: credit days by customer and salesman, retailers at risk, claims owed.
- Build and hand over: a weekly collections and follow-up list from Tally that you can send on WhatsApp.
Sources
- Recordent MSME receivables report, 2026 (a collections company's own data).
- CGST Rule 88D and the GSTN advisory of October 2023.
Bring me the problem.
Tell me what you're trying to decide. We'll start with a free 30–45-minute call.