2 min read
Definition
Debtor days (or days sales outstanding) is the average number of days between invoicing a customer and receiving payment, calculated as trade debtors divided by annual sales, times 365. It's a core measure of collection efficiency.
In plain terms
It tells you how long your money sits in other people's bank accounts. Sixty debtor days means two months of sales are perpetually unpaid.
Why it matters for your company
High debtor days strangle working capital. Cutting them frees cash without borrowing — see how to reduce debtor days. For a persistent gap, invoice finance helps.
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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.