Haggling is an art. Perhaps what you heard is certain. MSME's in the field of manufacturing and trading are very much familiar with the painful tasks of collecting dues from its customers. It is not easy for any businessman to deal with long credit cycles especially if they are going up more than 180 days resulting in the cash crunch. On top of this, across the globe the MSME sector has been hit hard by the pandemic induced crisis.
One of the main problems is that most of the companies provide credit to their customers without knowing their payment history. Similarly a well-known electrical component manufacturing company has provided credit to its customers and has failed to collect their dues for a prolonged time. The manufacturing company has learned about how Recordent can solve late payment problems through online webinar. And submitted their customer dues on the Recordent platform in September-2020. Submitted dues belong to 500+ customers (distributors, dealers, etc.) out of which 90% have not paid for more than 180 days and 60% are found overdue for more than one year.
After the manufacturing company had submitted its customer dues on Recordent platform through a simple online form and bulk upload. The Recordent engagement platform immediately started notifying the customers on the status of their dues by sending them SMS, IVR or email notifications on a weekly basis. Recordent has created awareness among these customers on how their payment track record can be viewed by other businesses & lenders, and also made them realize the importance of having a positive payment track record. Thus it motivated and created urgency among the customers to pay the dues as soon as possible.
The manufacturing company was successful in collecting dues from more than 250+ customers within short period of time (within 60days). Since then, the company has been regularly using Recordent by submitting its customer dues on a regular basis and improved its payments collection cycle. Till date, the company has been able to collect more than INR 5 Crore from their distributors, dealers, etc. with the help of Recordent platform.