™2 min read
Definition
Debtor days = (trade debtors ÷ annual credit sales) × 365. It shows how long, on average, money sits owed to you after a sale. High debtor days mean you are effectively financing your customers for free.
In plain terms
It is how long you wait to actually get paid. If you offer 30-day terms but your debtor days are 55, customers are routinely paying late and your cash is stuck.
Why it matters for your company
Cutting debtor days frees cash directly. Chase early, set clear terms, and consider incentives. See how to chase overdue invoices and the debtor days calculator.
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