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.