This calculator will show you the benefits of collecting unpaid invoices (i.e debtors) a bit faster.
If you do this, the extra cash is available for you to tap into for business growth priorities or even lifestyle purposes.
Your credit terms: How long do you give clients to pay? 7 days?, 14 days? 20th of month following? Or something else. e.g 14 days to pay
Your annual turnover ($): Get the figure from your accounting system. Use your estimated annual turnover, or if you prefer you could use last year's turnover figure. Turnover is the total revenue the business does in a year. e.g $1,000,000
Total Outstanding Invoices ($): How much your business is owed – it will include current & overdue. Can be found as: 1) The totalon your "Aged receivable report" current 30/60 days etc; or the amount of "debtors" 2) Debtors at the end of a financial year? e.g $250,000.
On average it is taking you
to turn a sale invoice into
cash received in your bank.
This is the period over and above your credit terms that
you are acting like a bank for your clients. Many clients will actually
be taking much longer to pay you.
Some... may never pay you!
Every day you act like a bank
for you clients reduces your business cash flow by exactly
Your credit terms are currently
14 days if we could help you
improve the speed of invoice payments
from 91.25 days to You might want to try reducing your debtor days to something closer to your existing terms of trade.
WOW... This would result in
more cash in your bank.