A distributor giving credit to many retailers needs a quick, repeatable check for each outlet: verify the GSTIN where the retailer is registered, set a credit limit and credit days per outlet, track ageing every week, and stop supplies to any outlet with an overdue bill. Escalate early with reminder calls rather than letting small dues pile up across many shops. FundRaksha Trust handles the GSTIN check, per-buyer limits, ageing and follow-ups in one account.
Why distributors need a system, not a feeling
A distributor's credit risk is spread across many small accounts. One large default is rare; what hurts is a long tail of outlets that each owe a little more every week. A clear rule applied to every outlet protects margins better than judging each shop by familiarity.
Checklist for a new retailer
- Check the GSTIN. Confirm status and names with the free GST lookup or the Basic check in the app. Many small retailers are composition taxpayers, which is normal, but such a retailer cannot charge GST on its own bills.
- Match the shop to the registration. The trade name and address should fit the outlet your salesman visited.
- Ask other distributors. A retailer that is overdue with one supplier is often overdue with others. The defaulter network shows reports from suppliers who use FundRaksha.
- Start with a small limit and a short credit period, such as one week, and raise it after bills are paid on time.
- Take a signed acknowledgement on every delivery.
Running credit across many outlets
- Set limits per outlet. In Receivables, set a credit limit and credit days for each buyer; the app warns you before an invoice crosses the limit.
- Watch the ageing. Ageing buckets (not due, 1 to 30, 31 to 60, 61 to 90 and 90+ days) show which outlets are slipping. A daily alert flags newly overdue invoices.
- Import from Tally. In the web app you can import a bills-receivable export from Tally, Excel or CSV, so the list stays current.
- Check in bulk. The bulk GST check in the web app runs a whole beat's GSTINs at once.
- Let your accountant in. Team and CA access lets your accountant or staff work on the same account.
When an outlet stops paying
Stop further credit first. Then start a soft follow-up with reminder calls and emails, move to a hard follow-up if the outlet stops responding, and send a legal notice if a cheque bounces or dues stay unpaid. See how to recover money from customers.
Frequently asked questions
How much credit should a distributor give a new retailer?
Start with a small amount you can afford to lose and a short credit period. Raise the limit only after several bills are paid on time.
Can I verify a retailer who has no GST registration?
A GSTIN check is not possible without one. Rely on references from other distributors, a visit to the shop, a very small starting limit or payment on delivery.
How do I track which retailers owe me money?
Use a receivables list with ageing. In FundRaksha Trust, Receivables shows invoices per buyer, credit limits and ageing, with a daily alert on newly overdue invoices.
Can I check many retailers' GSTINs together?
Yes. The bulk GST check in the FundRaksha web app takes a list of GSTINs and gives you a results file.
This guide is general information for Indian businesses, not legal or tax advice. GST data shown by any tool comes from public records and should be confirmed on the GST portal before you act on it.