Debtor Days Calculator
If you can improve how efficiently your business collects payments from its customers with an effective Credit Management team, you can release cash into your business which could be used to invest for growth, pay down loans or be returned to shareholders.
Use this simple Debtor Days calculator to find out how much cash is tied up with late paying customers.
What are Debtor Days?
Debtor days (also known as days sales outstanding) measure how long it takes your customers to pay you after you’ve issued an invoice. It’s a key credit control metric that helps you understand how efficiently your business turns sales into cash.
The higher your debtor days, the more of your money is tied up in outstanding invoices, which can limit cash flow, delay investments, and increase your reliance on overdrafts or borrowing.
By calculating your average debtor days using our Debtor Days Calculator, you can monitor customer payment behaviour, spot red flags early, and take action to improve your overall credit control procedures
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Why Debtor Days Matter for Cash Flow
A high debtor days figure means more cash is locked in outstanding invoices, which can slow your ability to:
Pay suppliers and staff
Our service provides a comprehensive approach to managing credit and recovering debts.
Reinvest in growth
We follow a structured methodology to ensure timely and effective debt resolution.
Respond to unexpected expenses
Our team customises strategies based on your unique business requirements.
How to Reduce Debtor Days
Lowering your average debtor days means you get paid faster — and run your business with more certainty.
Set clear payment terms from the start (e.g. “30 days from invoice”)
Offer incentives for early payment
Send automatic reminders as the due date approaches
FAQs
Find answers to your most common questions about Debtor Days.
To calculate debtor days, divide your current trade receivables by your total annual credit sales, then multiply by 365.
Our free Debtor Days Calculator does the maths for you, just enter your current receivables and credit turnover to get instant results.
High debtor days mean your money is tied up in unpaid invoices, which can lead to cash flow issues, missed opportunities, and reliance on short-term borrowing. It’s a key indicator of how effective your credit control process is.
You can reduce debtor days by issuing invoices promptly, setting clear payment terms, conducting credit checks, and sending consistent follow-ups before and after the due date. Automating your credit control process can also help speed up payments.
The average debtor days in the UK typically range between 40 and 60 days, depending on the industry. For example, construction firms often wait over 60 days, while retail businesses may average around 35–45 days. Use our calculator to compare your business to the national average.
We offer a suite of free tools and resources designed to help businesses improve their credit control and cash flow management. Late Payment Interest Calculator, Free Late Payment Templates, company checker, Free Cashflow Expert Course
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