Every company wishes to grow and become more valuable – the higher the free cashflow generated by the company, the higher the firm’s value.

Regular cash flows enable the organization to improve profit / market share etc – as cash flows allow a company to invest in future projects.

One of the key factors affecting regular cashflow is customers not paying on time – as the sales team either don’t have time to follow up OR has a conflicting relationship between sales and collections.

Outsourcing the collections of overdue debtors to GGA will enable the company to focus on core business activities rather than managing in-house overdue receivables.

Faster collections will lead to higher investments in further projects and as the fly wheel spins faster, the company can go from strength to strength in the following ways:

1. Improved Cash Flow

When overdue debtors represent 40-50% of company’s current assets then turning those receivables into cash will immediately improve the financial position of the company.

• Consistent and friendly follow up with customer brings due invoices to the top of payment pile and builds discipline and recall value to pay our customers on time.
• Early follow up for due invoices facilitates faster resolution and shorter delay of payment that automatically improves cash flow of dispute company in long term.

2. Improved Control over the Invoice to Cash Cycle

Outsourcing the overdue debtor collections to GGA will provide the companies access to:

• Specialized collection strategy: For GGA collection is its core competency and we have teams highly trained in customer management and debt collections management.
• Consistent, effective and efficient collection processes: Standardization and consistency in collection process improves quality and increased customer satisfaction, accelerated collection and shortened payment cycles.
• More control over the processes: Outsourcing collections is more reliable in many ways, it provides independent feedback and submits dashboards at every month detailing the customer issues that are reflected in non-payments by customers.

GGA provides a scalable staffing model, we add resources as the company is growing, so that the follow up is effectively done across all customers. The cost of acquiring, training and managing qualified staff remains our responsibility.

4. Cost Savings and No Fixed Costs

A scalable staffing model saves cash and facilitates company to obtain efficient service at lower cost. It reduces cost on recruitment, training and development. It enables the company to take service of highly experienced and trained experts in more efficient way.

The company does not incur any fixed costs on hiring, training and retaining employees.

5. Improves Overall Business Performance

With the highly focused and trained professionals, GGA helps in increasing performance that reduces DSO and get paid faster by customers - resulting in cash flow improvements

GGA provides financial transparency and highlights exact reasons for customer non payments - GGA improve corporate accountability by identifying external and internal problems in the payment cycle for timely resolution.

Conclusion

The core focus of a business in growth in revenue and profits - outsourcing increases business effectiveness and improves profitability by reducing DSO, cost per transaction.

About GGA

GGA India Private Limited (GGA) is a focused “Business to Business” Account Receivables Management (“ARM”) Service Provider. GGA concentrates exclusively on designing, developing and implementing customized B2B debtor collections solutions for its clients.

Founded in 2002, GGA works with B2B organizations to collect from both concurrent and legacy debtors.

GGA has worked with several service organizations, project companies and product companies and assisted them with the better cash flow improvement. We have delivered outstanding results assisted as growth partners to businesses.