A construction-material distributor extends credit to retailers the same way retailers extend it to contractors. The distributor's cash flow depends on collecting on time, and on the retailer agreeing with the balance.
Set clear terms
Agree, in writing, the credit period (e.g. 30 days from invoice), the credit limit per retailer, and what happens when either is crossed. Terms that exist only in conversation are the first thing disputed.
Age the outstanding
| Days since invoice | Status |
|---|---|
| Within terms | Current |
| Up to 15 days past terms | Reminder on the next visit |
| 16–45 days past terms | Owner-to-owner call; hold new large orders |
| Beyond 45 days past terms | Stop supply until a payment plan is agreed |
Review this list weekly, not only at month end.
Reconcile balances
Most disputes come from records that do not match: a payment recorded against the wrong invoice, a return not credited, a short supply not adjusted.
- Apply every payment to specific invoices, oldest first, unless the retailer specifies otherwise.
- Issue credit notes promptly for returns and short supply.
- Send a statement to each retailer monthly and ask them to confirm it.
Collection rounds
When field staff collect cash or UPI from shops:
- Each collection gets a receipt with the invoice(s) it clears.
- Staff hand over cash daily, and the handover is recorded separately from the collection.
- The retailer's balance is updated the same day, so the next visit starts from the right number.
Where software helps
When distributor and retailer both see the same invoices and payments, reconciliation disappears as a monthly task. That shared ledger is part of what NANDIX OS provides between stores and their distributors.
