The terms say 30 days. The money lands on day 58.

Most of the gap between your payment terms and your actual cash collection was created before the invoice ever left your building.

By Steve 5 min read
Abstract bridge artwork for The terms say 30 days. The money lands on day 58.

A business with 30 day terms and 58 day collections usually concludes it has a chasing problem. Someone is asked to be firmer, a credit control diary appears, and for a quarter the number improves by a few days before drifting back. The conclusion is understandable and mostly wrong. The 28 day gap is rarely one delay. It is four separate delays stacked on top of each other, and only the last of them responds to chasing. The gap is four gaps Split the journey from work completed to cash…

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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

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