Debtors / Receivables Aging & DSO Diagnostic Calculator
What is my weighted Days Sales Outstanding (DSO), how much book debt is bank-eligible, and what bad-debt provisioning is required?
Financial Inputs
Annual revenue generated on credit terms (exclude cash sales).
Fresh invoices issued within the last 30 days.
Invoices due or slightly delayed within standard corporate credit terms.
Invoices approaching the bank Drawing Power 90-day cut-off.
Overdue receivables disqualified by banks from Cash Credit Drawing Power.
Severely aged receivables subject to legal recovery / NCLT proceedings.
Margin deducted on eligible receivables (typically 30–40%).
Prudential bad-debt provisioning rate on 91–180 day debts.
Prudential bad-debt provisioning rate on >180 day debts.
Days Sales Outstanding (DSO)
Your Total Receivables stand at ₹600 Lakh, translating to a Days Sales Outstanding (DSO) of 91 days.
Total Trade Receivables
6,00,00,000
Bank Eligible Debtors (<=90 Days)
5,00,00,000
Bank Ineligible Debtors (>90 Days)
1,00,00,000
Drawing Power from Receivables
3,00,00,000
Key Financial Takeaways
- Your Total Receivables stand at ₹600 Lakh, translating to a Days Sales Outstanding (DSO) of 91 days.
- Out of this, ₹500 Lakh (83.3%) qualifies for bank Drawing Power, generating ₹300 Lakh in usable bank credit facility limit after a 40% margin.
- ₹100 Lakh is trapped in overdue buckets (>90 days), with a recommended accounting risk provision of ₹29 Lakh.
Frequently Asked Questions
Why do Indian commercial banks exclude book debts over 90 days?
RBI credit monitoring guidelines treat uncollected receivables older than 90 days as potential non-performing assets. Consequently, commercial banks automatically disqualify debtors aged >90 days from the monthly Drawing Power calculation.
How can companies monetize aged receivables (>90 days)?
Options include structured invoice factoring with recourse, invoice discounting via TReDS platforms for MSME sales, or initiating conciliation under MSME Samadhaan.
Calculators on this platform provide indicative mathematical estimations based on industry-standard financial appraisal models (including Tandon Committee Method II, Nayak Turnover Method, and standard compound amortisation).
They do not constitute a formal facility sanction, credit commitment, or legal advisory from SME PAISA or any partner banking/NBFC institution. Final terms, interest margins, security stipulations, and credit sanctions remain strictly subject to formal credit appraisal, audited balance sheet verification, CMA Data assessment, and risk committee approval by institutional lenders.
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