Robust credit control system is vital for growth: Pawan Bansal

Addressing a session on the theme'Can robust credit controls act as a growth catalyst?' at the first Karnataka Talks OOH! conference, Pawan Bansal, COO - Jagran Engage, began with a question, "Why are we in the outdoor business?” He added that like any other business, the obvious answer is to make money.

Currently, the outdoor business functions on low margins which affects media owners substantially. As of today, the credit period in the business varies between 150-180 days, where money rotates 2-2.5 times in a year yielding very low margins. The session highlighted that if credit period is reduced even with low margins, profitability can be increased. Bansal stressed that the agencies need to understand this fact and their contribution to it.

He added that if there is more money at hand at a particular time, it can be invested on aesthetics, newer markets and newer formats. With limited cash flow, the industry is currently stagnant, hence a robust credit control system can be highly beneficial.

"This view-point is not limited to a particular section of the industry. It is a viscous cycle and affects the entire supply chain. Only if a system is employed at all points of the chain, can we make a difference,” Bansal said.