Analysis of receivables from customers in company x and the impact of payment indiscipline on business

The graduation thesis deals with two interrelated areas of receivables to customers and payment discipline. The main purpose of the research was to find out how payment indiscipline affects the company, whether other companies also face it, and how to manage it. In the theoretical part, I defined receivables from customers, presented the causes and consequences of payment indiscipline, and collateral instruments for receivables and recovery methods.

Receivables from customers arise from the sale of goods on a deferred basis. Monitoring and managing receivables are key to achieving optimal volume. When buyers fail to settle their obligations, it is called payment indiscipline. Payment indiscipline is still a common phenomenon among Slovenian companies. External or internal factors cause it.

Payment indiscipline hurts the creditor’s business and can be fatal for many companies. Unpaid receivables can be recovered in a variety of ways. An increasingly established way of verifying companies is a credit rating, which gives us information about the stability of the company. Receivables can also be secured to prevent the occurrence of payment indiscipline.

By using various indicators, we made an analysis of receivables from customers in company X from 2020 to 2023, on the basis of which we determined the structure of receivables, receivables turnover, and shares. The example shows the impact of payment indiscipline on the balance sheet, which we used to check which items change due to late payments.

A survey was conducted among Slovenian companies to determine the frequency of payment indiscipline among small enterprises, the use of collateral instruments, and the recovery of overdue receivables. The answers reveal that companies are still facing the phenomenon of payment indiscipline, which they often do not protect themselves against. In the case of collecting overdue debts, they most often use a warning or a telephone conversation.

In the conclusion, we presented measures to improve the management of receivables from customers, which could reduce or limit payment indiscipline.