2 min read
What debtor days show
Debtor days measure the average time customers take to pay. The lower the figure, the less cash is locked outside the business. Rising debtor days are an early warning of tightening cash.
Bringing it down
Set clear terms, invoice promptly, chase early, and consider a prompt-payment incentive. Every day cut frees cash. See how to reduce debtor days.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.
Frequently asked questions
What are good debtor days?
It varies by sector and your terms, but lower is better and the trend matters most. If you offer 30-day terms, an average well above 30 signals collection problems.
How do I improve debtor days?
Agree clear terms, invoice immediately, chase the day an invoice is overdue, and consider an early-payment discount if the cost is worth it.
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