What are debtor days?
Debtor days measure the average time it takes a business to get paid and is sometimes called “day’s sales in accounts receivable.”
Knowing what your business’s debtor days are is incredibly important, as it impacts your business’s cash flows.
There are a number of ways you can reduce the amount of time it takes for you to be paid including:
- Creating clear terms of payment
- Issuing invoices on time
- Providing several payment options
- Responsive customer service
To improve your cashflows, businesses can consider invoice finance to help with extended payment terms and slow-paying customers.
Invoice finance is a funding solution that helps you access your earnings faster so you can put those funds back into your business. Instead of waiting months to be paid, with invoice financing, you can get an immediate cash advance of up to 95% of the invoice value. Speak to your mortgage broker for more information.