2 min read
Definition
Creditor days (or days payable outstanding) is the average time a company takes to settle supplier invoices, calculated as trade creditors divided by purchases, times 365. It's the payables counterpart to debtor days.
In plain terms
It shows how long you hold onto suppliers' money. Longer creditor days keep cash in your account — but stretch it too far and you damage relationships.
Why it matters for your company
Balancing creditor days against debtor days shapes your cash conversion cycle. Managed fairly, it eases working-capital pressure. See working capital management.
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Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.