Collections and receivables ageing for builders: a monthly routine

On this page

What an ageing report shows
Know why each account is overdue
The monthly routine
Metrics that matter
Interest and cancellation, carefully
Make collections visible to sales
How to communicate at each stage
What to share with the promoter each month
Sources

In a construction-linked project, most of the price arrives after booking. A tower with 200 units at ₹80 lakh each carries about ₹160 crore of agreement value, and most of it is collected in instalments over two to four years. How well you collect decides how much construction finance you need and what it costs.

This article sets out a monthly routine for collections, built around a receivables ageing report. It is meant for CRM heads, finance controllers and promoters who want fewer surprises.

01What an ageing report shows

An ageing report groups unpaid demands by how long they are overdue. Older dues are harder to collect and more likely to end in disputes or cancellations.

Illustrative ageing for one project. Demands not yet due are reported separately.
Bucket	Units	Amount overdue (₹)	Share of overdue
1 to 30 days	26	1,42,00,000	49%
31 to 60 days	11	62,00,000	21%
61 to 90 days	5	33,00,000	11%
Over 90 days	6	54,00,000	19%
Total overdue	48	2,91,00,000	100%

Run it per project and per tower. A single company-wide number hides the tower where a slab demand went out late or the project where a dispute is brewing.

02Know why each account is overdue

Overdue amounts are not all the same. Tag every overdue account with a reason, because each needs a different action.

Reason	Typical action	Owner
Bank disbursal pending	Send stage certificate and demand to the bank; follow up with the disbursement desk	CRM executive
Buyer cash shortfall	Agree a dated plan; apply interest as per agreement or seek approval to waive	Collections lead
TDS not matched	Request 26QB acknowledgement or correction	CRM executive
Dispute about quality, delay or charges	Escalate to project and sales heads; respond in writing	CRM head
Buyer unreachable	Try all contacts, including POA holder and co-applicant; registered letter if needed	Collections lead
NRI buyer, remittance delay	Confirm remittance date and account; share SWIFT details	CRM executive

TipBank disbursal delays are often the largest bucket and the easiest to fix. Build a relationship with the disbursement desk at each lender your buyers use most.

03The monthly routine

Week 1: close the books on last month

Match every receipt to a demand. Record TDS separately and mark it verified only once it appears in Form 26AS or Form 16B is received.
Export receipts to Tally and reconcile with the bank statement for each project account, including the RERA separate account.
Run the ageing report as of the last day of the month.
Tag reasons on every account over 30 days.

Week 2: work the 1 to 60 day buckets

Call every account in the 31 to 60 bucket. Most are recoverable with a reminder and a clear due date.
Send bank follow-ups for all financed units with disbursal pending.
Send interest computations to buyers who are overdue, as the agreement provides.

Week 3: escalation meeting for 61+ days

CRM head, finance controller and sales head review every account over 60 days.
Each account gets a named owner, a next action and a date.
Decide on interest waivers through the same approval process as discounts.
For accounts over 90 days with no progress, review the cancellation clause in the agreement and take legal advice before issuing notices.

Week 4: plan next month's demands

Get the construction schedule for the next 30 to 45 days from the project team.
List the towers and units that will receive demands, with expected amounts.
Share the forecast with finance for cash planning.
Check that demand letters, bank details and GST settings are correct before the stage is reached.

04Metrics that matter

Metric	Formula	Why it matters
Collection efficiency	Amount collected in the month ÷ amount that fell due in the month	Shows whether you keep up with demands
Overdue over 90 days	Amount over 90 days ÷ total receivable	Shows risk of disputes and cancellations
Demand lag	Days from stage completion to demand letter	Shows internal delay before the buyer is even asked
Disbursal lag	Days from demand to bank payment, for financed units	Shows where to push lenders

Demand lag is the one most developers do not measure and can fix entirely by themselves. Every day between a slab being cast and the demand going out is a day of collections lost.

05Interest and cancellation, carefully

Section 19(6) and (7) of the RERA Act require allottees to make payments on time and make them liable for interest on delay. Section 2(za) requires the interest rate charged to buyers to equal the rate the promoter pays when it defaults. Apply interest as the agreement provides and record any waiver.

Watch outCancellation for non-payment must follow the agreement and your state's rules. Forfeiture limits, notice periods and refund timelines vary. Take legal advice before cancelling, and remember that for financed units the lender's interest under the tripartite agreement comes first.

06Make collections visible to sales

Sales teams often do not know which of their buyers are overdue. When a buyer asks for a favour, such as a transfer or a change in unit, the sales manager should see the payment status. Shared visibility also helps sales understand that a booking with a weak payment profile is not a good booking.

LeadOne AI keeps demand letters, receipts, the buyer ledger and ageing in the same system as leads and bookings, with an export for Tally, so sales and finance look at the same numbers.

07How to communicate at each stage

Stage	Channel	Tone and content
Demand raised	Email and WhatsApp, copy to lender	Clear stage, amount, due date and account details
3 days before due	WhatsApp or SMS	Friendly reminder with the amount and a payment link or account
7 days overdue	Phone call	Ask about the reason; offer help with the bank or documents
30 days overdue	Email and letter	Formal notice of amount overdue and interest as per agreement
60 days and more	Meeting or call by a senior person	Agree a dated plan; explain the agreement terms plainly

Keep every reminder and call outcome on the buyer's record. If an account ever reaches a dispute, a dated history of reasonable follow-up matters.

08What to share with the promoter each month

Total due in the month, collected in the month and collection efficiency, by project
Ageing summary with the change from last month
Top ten overdue accounts with reasons and next steps
Demand lag for stages completed in the month
Forecast of demands for the next month from the construction schedule

What is receivables ageing in real estate?

A report that groups unpaid buyer dues by how long they have been overdue, for example 1 to 30, 31 to 60, 61 to 90 and over 90 days. It shows where collection effort is needed.

How can builders reduce delayed payments from buyers?

Raise demands within a day or two of stage completion, send them to lenders at the same time, remind before the due date, tag a reason on every overdue account, and review older accounts weekly with a named owner.

Can a builder charge interest on late payment?

Yes, as provided in the agreement for sale. Under RERA, the rate must be the same as the rate the promoter would pay the buyer for its own default, as prescribed in state rules.