2 min read
What debtor days tell you
Debtor days measure how long, on average, customers take to pay. High debtor days mean cash locked outside the business — you are financing your customers for free.
How to cut them
Agree terms up front, invoice the moment work is done, chase the day an invoice is overdue, and consider an early-payment discount if the cost is worth it. See how to chase overdue invoices.
What it means for you
Faster payment is the cheapest funding there is. 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, but lower is better and consistency matters most. Track the trend: rising debtor days signal deteriorating collection and tightening cash.
Is a prompt-payment discount worth it?
It can be, if the annualised cost of the discount is less than your cost of finance. Use the early payment discount calculator to compare before offering one.
Related reading
Why does my bookkeeping matter for borrowing?
Lenders decide on what they can see, so clean, current bookkeeping directly improves your chances and your…
Read →
How do I cover a supplier payment before I get paid?
When a supplier wants paying before your customer pays you, a short facility bridges the gap and protects the…
Read →
What is invoice finance and how does it work?
Invoice finance advances you most of the value of an unpaid invoice straight away, then settles when your…
Read →
What is a good debtor-days figure?
Lower debtor days are better — it means customers pay faster and less of your cash is tied up — but the ideal…
Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.