Turnover grows every year. Profit doesn't.
Most distributors judge the year by turnover, and turnover usually grows. But the principal sets the margin, retailers set the payment terms, and the bank sets the limit. In between, the distributor carries the stock, the credit, the claims and the risk. A few extra days of retailer credit or a few unclaimed schemes can wipe out the year's profit without anyone noticing.
When we start with a distributor, the first question is "what do you earn on each retailer, after the credit they take?". One long-standing client, a trading partnership, describes what that kind of attention changed:
What truly sets them apart is their ability to dive into the details—cash flow, operations, and compliance—while simultaneously offering strategic insight that supports long-term decision-making. Their guidance has always been practical, thoughtful, and tailored to our specific needs rather than one-size-fits-all solutions.
Quoted word for word from our clients. Some quotes use our former name, Soatech.
Follow ₹50 crore of sales through a typical FMCG distributor
Here is the cash cycle of an illustrative distributor for two FMCG principals:
At ₹50 crore of sales a year, 60 days means about ₹8.2 crore is permanently tied up in the cycle. That is what your bank limit and your own capital are really funding. Recover claims and retailer dues 10 days sooner and about ₹1.4 crore comes back, with no new loan and no new customer.
Illustrative composite figures, not a client's. Your own cycle comes straight from your balance sheet: stock, receivables and payables, each divided by a day's sales or purchases.
Six money problems specific to distribution
Margin after credit cost
A retailer who pays in 45 days on a 7% margin earns you far less than one who pays in 10. We show profit by retailer and beat after credit cost, and set limits by it.
Schemes and claims from principals
Trade schemes, rate differences and damage claims are real income, but only once they're claimed and paid. We keep a claims register, submit monthly and chase every rupee.
GST credit blocked by suppliers
Input credit only appears when suppliers file. We reconcile GSTR-2B every month and hold payments to suppliers who haven't filed.
Stock that ages quietly
Near-expiry, slow and damaged stock ties up cash and becomes a loss later. We track stock days by principal and SKU, and clear slow items early.
Festive and season peaks
Diwali, the wedding season and summer need extra stock and credit weeks in advance. We arrange seasonal limits before the season, not during it.
Cash collections and salesmen
Field collections need daily banking and reconciliation. We set up controls that keep cash safe and the books clean.
Want a CFO to look at your numbers?
A senior CFO reviews your figures with you and shows you where to improve. No cost, no obligation.
How we turn a distributor's volume into profit
Profit by retailer, beat and principal
Gross margin less credit cost, cash discount, freight and claims, monthly.
A claims register
Every scheme, rate difference and damage claim, tracked from eligibility to receipt.
A GST reconciliation routine
GSTR-2B matched to purchases monthly, with supplier follow-up.
Stock and credit limits
Days of stock by SKU, credit limits by retailer, reviewed every month.
A 13-week cash forecast
With principal payments, scheme receipts and festive stock on their real dates.
Check your own numbers
See what retailer credit and old receivables do to your bank limit:
Ask CFOAvatar about your trade
What clients say
Some of the businesses we work with.
The founders were consistently hands-on and always available for a call or conversation whenever clarity or direction was needed. That level of accessibility, combined with their integrity and absolute character in execution, built a level of trust that is rare in professional services.
They even worked with us to finetune our software (Gross Mart) so we could get micro-level details on various aspects of the business. On top of that, they streamlined our receivables follow-up process and provided valuable guidance on bank loans and valuations.
Before CFOSurge came into the picture, our business lacked financial discipline. Once their team started overseeing our finances, everything fell into place. There was accountability and when you know someone is keeping track, you ensure things get done properly. It’s been three years and the systems they put in place are still working well. Our business is in a much better position today.
Quoted word for word from our clients. Some quotes use our former name, Soatech.
Questions owners ask us
How can a distributor increase profit without increasing sales?
By reducing credit cost, recovering every scheme and claim, avoiding blocked GST credit, clearing slow stock and stopping cash discounts that don't change payment behaviour. Together these often add more profit than a year of sales growth.
Do you work with C&F agents and stockists?
Yes. We work with distributors, stockists, wholesalers and C&F agents, and tailor the MIS to how each earns.
Can you help with a second principal or a new territory?
Yes. We model the stock, credit and bank limit a new line needs, and its profit after credit cost, before you commit.
