Why receivables get stuck — and how to recover faster

Most businesses don't lose money because a customer is dishonest. They lose it because nobody noticed in time.

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In a small business, the problem with credit is rarely intent — it's visibility. By the time you realise a customer hasn't paid in three months, the amount has grown large enough that he starts avoiding you too.

Look at age, not just amount

Rs. 20,000 that is fifteen days old and Rs. 8,000 that is four months old — the second one is far more dangerous. That's why receivables should be grouped by age: 0–30 days, 31–60, 61–90, and beyond 90.

Follow up early, not loudly

• Send the bill the day the month closes — don't let it drift
• A gentle reminder after 15 days
• A phone call at 30 days, with the balance stated clearly
• At 60 days, consider pausing further supply

Make the bill easy to understand

Customers often delay simply because they can't see how the amount was arrived at. When every delivery appears on its own line — date, quantity, rate — the question never comes up and payment arrives faster.

A bill the customer can understand is a bill that gets paid.

Make paying easy

Put EasyPaisa, JazzCash and bank details on the bill itself. The less friction there is, the sooner the money moves.