1. Consulting
  2. Budget & Revenue

Time to Collect Payment From Clients

Time

The average number of days it takes to receive payment after invoicing a client. Faster collection improves cash flow and indicates good client relations and efficient financial processes.

Formula

(Total Days Taken to Collect Payment for all Projects / Number of Projects)

Example

If in a month with 10 projects, it took a total of 250 days to collect all payments, the average time to collect would be 25 days.