Discover how disciplined receivables management and process improvements helped accelerate cash collections, strengthen liquidity, and unlock free cash flow growth.
Problem Statement:
Powercon faced a critical cashflow challenge: customers were taking over 120 days on average to make payments. This prolonged collection period increased working capital investments, forcing reliance on bank debt and internal savings, and eroding free cash flows.
Solution Offered:
- Issued invoices on the due date without delays
- Documented the invoicing process, including all required compliance documents, and tracked their receipt to accompany invoices
- Developed a management dashboard and conducted weekly reviews to identify delays and accelerate resolution
Result/ Impact:
- Reduced accounts receivable days from 120+ to 39 days
- Significantly improved liquidity and working capital management
- Improved free cash flows, a key metric in company valuation
