Professional Credit & Working Capital Management Services in UAE
Numerix Accountants’ specialized Credit and Working Capital Management services help businesses overcome cash-flow and financial health obstacles. The solutions are designed for the local regulatory environment and business culture. They aim to restore your operational efficiency so your business can thrive.
The three numbers behind working capital
Working capital is managed through three measures. These are days sales outstanding (how long customers take to pay), days inventory held, and days payable outstanding (how long you take to pay suppliers). The gap between cash going out and cash coming in is the cash conversion cycle.
Shortening collection time, reducing slow stock, and agreeing supplier terms each release cash without new borrowing. We calculate these measures from your ledger and identify which customers, products or suppliers account for most of the gap.
Calculating the cash conversion cycle step by step
Take a business with receivables of AED 600,000 and annual credit sales of AED 3,650,000. Sales per day are AED 10,000, so days sales outstanding is 600,000 divided by 10,000, which is 60 days. Suppose stock is held for 45 days and suppliers are paid after 30 days. The cash conversion cycle is then 60 plus 45 less 30, or 75 days.
Each day removed from the cycle has a cash value. Cutting collection time by 10 days in this example frees about AED 100,000, because ten days of sales are no longer waiting in receivables. We build this arithmetic from your own ledger so you can see which lever is worth pulling first.
Writing a credit policy that staff will actually follow
A credit policy is a short document, not a legal contract. It sets out who can be offered terms, how much, and what happens when a payment is missed. We help you put these parts in place:
- A credit application form and a check of trade references before the first order.
- A limit for each customer, reviewed at least once a year and after any late payment.
- Standard terms printed on quotes and invoices, so there is no argument about the due date.
- Use a reminder routine: a note before the due date, a call on the due date, and a firm letter after 30 days.
- A register of post-dated cheques with their deposit dates and the customers who issued them.
- A monthly ageing report and an agreed approach to provisioning for balances that are unlikely to be paid.
A rolling 13-week cash forecast
Short-term liquidity is easier to manage when you look a quarter ahead, week by week. The forecast starts with your opening bank balance and adds expected customer receipts by due date. It deducts payroll, rent, supplier payments, loan instalments and tax payments. VAT, for example, is due within 28 days of the period end. Each week you replace the forecast with actuals and extend the horizon by one week. The gap between plan and reality then becomes visible early.
More questions
What is a good days sales outstanding figure?
It depends on your terms and sector. A useful test is to compare your actual figure with the payment terms you offer. If you give 30 days and customers take 60 on average, the gap is the problem to investigate.
Do you collect payments from customers on our behalf?
No. We prepare the ageing analysis, the reminder schedule and the policy, and your team or your chosen collection route contacts the customer. Our role is the numbers and the process behind them.
Are These Common Credit & Cash Flow Challenges Affecting Your Business?
Managing credit and working capital effectively is complex. Common issues your business may currently face include:
Inefficient accounts receivable management causing delayed collection cycles, negatively impacting liquidity.
Poor inventory practices resulting in either excessive stock tying up valuable cash, or insufficient inventory failing to meet client demands promptly.
Ineffective accounts payable strategies causing inefficient use of credit terms, leading to strained supplier relationships and disruption of business operations.
Insufficiently defined credit policies, increasing the likelihood of bad debt and compromising financial security.
Difficulty in accurately forecasting short-term cash flow, making it challenging to meet current liabilities and investment opportunities.
Without a structured, professional approach, these challenges can lead to prolonged financial instability and weakened trust with vendors and partners. They can also limit your capacity to scale within the dynamic UAE market environment. At Numerix Accountants, we step in at these pain points. We provide credit and working capital management services that target your unique business challenges.
How We Empower Your Business With Efficient Credit & Working Capital Management Services
Numerix Accountants provides customized credit and working capital management solutions specifically designed for businesses operating throughout the UAE. By partnering with us, your company will:
Achieve Enhanced Cash Flow
Systematically speed up receivables collection and strategically manage payables to ensure sustained positive cash flow for your daily operations.
Minimize Bad Debt Risk
Implement clear, efficient credit management policies aligned specifically with UAE standards, dramatically reducing the exposure to unreliable customers and delinquent accounts.
Improve Inventory Management
Oversee your stock levels precisely to minimize cash tied up in unnecessary current assets. This directs resources toward profitable opportunities and helps you serve your client needs effectively.
Strengthen Financial Stability
Precisely forecast short-term obligations, effectively overseeing current liabilities, ensuring smooth operations, and positioning your company confidently for long-term growth.
Gain Regulatory Compliance
Work directly with experienced financial professionals who deeply understand the market and regulatory framework, enabling full compliance and informed, strategic decision-making.
Choosing Numerix Accountants makes your credit and working capital management activities well-organized, efficient, and aligned with your growth objectives. It strengthens earnings and enhances financial health. It also positions your company for lasting success.
Take Action Now: Secure Your Business’s Financial Stability Today
Don’t let inefficient working capital or poorly administered credit limit your growth potential. Contact Numerix Accountants today to arrange your complimentary financial consultation. Let our expert team assess your unique needs and develop tailored, effective working capital management strategies to immediately enhance earnings and solvency.
Take the first step towards stronger cash flow, reduced risk, and sustained growth.
Book a consultationTalk to Numerix Accountants
Call, message or email us to talk through your requirements. The first assessment call is free of charge.