Overview of Credit Management…

PREVENTIVE (PRE-FACTOR)

Assessment Reference
Security
Checks Interaction Plan

Visit Plan

Credit Control
Mapping
Limit Fixation
Plan

Recovery Plan
Periodical Monitoring
Balance Check
Review Tools

CURATIVE (POST-FACTOR)
Strategies for Managing Credit…
Strategy: 01
Appoint customers
where investment is
worth funding
Strategy: 2
Collect money as
Quickly as possible
without losing sales
from high collection
pressure

Strategy: 3
Clean-up existing credit
situation by using a
blend of Internal &
External resources
Landscape: ACI Credit
# of Credit Customer Credit Exposure
17,000+ Tk. 6,500 Million

Trade Debtor’s Credit Sales

Credit
Tk. 4,053 Million Portfolio Tk. 15,000 Million

# of Proposal Processed Cash : Credit Ratio

4,000+ in a Year 44:56
Success Measures…

01
Realized 55%
within Due
Payment Date

04
Discontinued
Business with

02
500+ Abusers Replaced
5,000+ Non-
MICR CQs

05
Reduced DSO
by 05 Days in

03
Y-2014 Settled 50+
Default Credit
Lines (30 Mn)
Growth Matrix At the Macro Level…

Overdue Debtors
15% (Tk. 1,322 Mn) Tk. 291 Tk. 245 17% (Tk. 4,053 Mn)
Mn Mn

Net Sales Credit Collection

Credit Sales
13% (Tk. 15,562 Mn) 6% (Tk. 9,121 Mn)
8% (Tk. 9,406 Mn)
Cash Flow Acceleration by Reducing DSO

2014
109 Days 108 Days 103 Days 91 Days

DSO 2015?
2011 2012 2013 2014
Why do we Care (Credit)?
Aug’15 Aug’14
Excess Investment  34 Days 32 Days

Cash Invested  1,322 Mn 1,151 Mn

Annual Interest  172 Mn 150 Mn

Cash Flow Trapped  1,494 Mn 1,300 Mn

If 10% improvement in DSO takes place
Cash Invested  917 Mn -

Annual Interest  119 Mn -

Money Released  458 Mn -

Act as a Facilitator…

Pay. Notification… Early Alert…

 While depositing  05-10 days before
money… due date…

Inv. Notification… SMS Reminder...

 While raising  While crossing
invoice… due date...

Welcome Note… Field Visit …

 While allowing  To recover from
credit… overdue jointly…
8

Reporting… Online submission Interactions…

 To pinpoint  Proposal Tracking  Frequent
improv. areas… System… Meetings with FF
Balancing of Long-overdue Movement……

410 Tk. 98 446

Mn
Mn Mn

Tk. 134
Mn