Distribution guide

How Distributors Can Control Market Credit

In distribution, credit is how you win shops — and how you lose money. Hundreds of small balances spread across routes add up to the biggest number on your books. Controlling it takes limits, visibility and a weekly rhythm.

By Rana Yasir Ali, Founder & CEO6 min read

1. Give every shop a credit limit

Set a limit for each shop based on how much it buys and how reliably it pays. When a new order would take the shop over its limit, the salesman should know before he books it.

2. See receivables route by route

Each route’s outstanding total, and the shops behind it, should be one click away. A route whose balance keeps rising is a route that needs attention now.

3. Look at the age of each balance

Worked example — one route’s receivables by age
0–30 daysRs 640,000 (normal trade)
31–60 daysRs 210,000 (follow up this week)
61–90 daysRs 85,000 (stop further credit)
Over 90 daysRs 40,000 (owner visit)

4. Collect against invoices

When a shop pays, record which invoices the money clears. Shops trust statements that match their own bills, and disputes drop.

5. Hold a weekly credit meeting

  • Shops over their limit
  • Balances older than 60 days, by route
  • Collections by each salesman or recovery officer
  • Promises to pay that were missed

HisabMate

How HisabMate keeps market credit in view

Credit, routes and collections are connected in HisabMate.

  • Customer credit limits and blocked-credit flags
  • Route-wise customers, receivables and collections
  • Aged receivables report
  • Credit sales with payment collection against each invoice
  • Collection by person report
  • Statements shared to WhatsApp
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Questions

How do I set a shop’s credit limit?

Start from what the shop buys in about two weeks and how reliably it has paid; raise it for good payers.

When should I stop giving credit?

When a shop is over its limit or has balances older than about 60 days, until it pays down.

Roman Urdu

Distributor market ka udhar kaise control kare?

Har dukaan ki credit limit rakhein, route wise baqi dekhein, 60 din se purana udhar pehle wasool karein, aur har hafte credit meeting karein.

Credit limit wala software?

HisabMate mein har customer ki credit limit, route wise receivables aur aged receivables report mojood hain.

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