Free tool
Claims working-capital calculator
Every day a claim sits unsettled, cash sits with it. Estimate the working capital tied up in your claims today — and how much a faster settlement cycle would release.
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Estimate the cash tied up in claims
₹2,00,00,000 of claims and deductions flowing through settlement each month
Days from a claim being raised to its credit note being settled today.
What you could settle within once claims are validated against the agreement automatically.
Cash tied up in claims today
₹3,00,00,000
Working capital sitting in claims still moving through settlement.
Cash freed at the target cycle
₹2,00,00,000
Released once by settling in 15 days instead of 45.
This is an estimate for illustration, not a guarantee — it assumes a 30-day month and an even claim flow, and your real figure depends on claim mix, dispute rates and payment terms. It is not tax or financial advice.
Why the settlement cycle is a cash-flow number
- Claims are receivables in disguise. A raised-but-unsettled claim is money you are owed or owe, parked until the credit note clears.
- Cycle length sets the balance. The longer the average settlement takes, the larger the pile of in-flight claims at any moment.
- Speed releases cash once, then holds it lower. Halving the cycle frees the difference immediately and keeps the tied-up balance down every month after.
- Disputes are the tail. A few slow, contested claims drag the average out — which is why clean validation matters to cash, not just to effort.
How to shorten the cycle
The cycle shortens when claims stop waiting on manual work: validate each claim against the agreement it falls under automatically, surface only the variances, and settle with a GST-compliant credit note and a clean audit trail. See settlement & payout management, read how to build a claim and rebate approval workflow, or size the other two costs with the scheme leakage calculator and the rebate accrual estimator.
Frequently asked questions
How much working capital is tied up in claims?
It is roughly the value of claims flowing through settlement each day multiplied by how many days a claim takes to settle. The slower the cycle, the more cash sits in claims that are raised but not yet cleared — money that is neither collected nor usable while it waits.
How does faster claim settlement free up cash?
Cash tied up in claims scales with the settlement cycle. Cut the cycle from, say, 45 days to 15 and the claims in flight at any moment shrink proportionally — releasing the difference as a one-time working-capital gain, then holding a lower balance from then on.
How is the estimate calculated?
Monthly claim throughput is spread over a 30-day month to get a daily rate, multiplied by your current settlement cycle for the cash tied up today, and by the reduction in cycle days for the cash freed. It is an illustration to size the number, not a precise measurement.
What slows claim settlement down?
Manual validation against agreements, claim files re-keyed into spreadsheets, disputes worked over email, and reconciliation tied out line by line. Each adds days. Validating every claim against the agreement it falls under automatically is what takes the cycle from weeks to days.
Is this figure something I can book?
No. It is an estimate to size the opportunity, not an accounting figure. Your real number depends on claim mix, dispute rates, payment terms and how evenly claims arrive. Confirm any working-capital figure with your finance team; this is not tax or financial advice.
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