1. Finance
  2. Receivables & Payables

Average Payment Cycle Time


The average time it takes for the company to process and pay an invoice upon its receipt, in days. A shorter cycle time can lead to better relationships with suppliers and potential early-payment discounts.


Total days taken to pay all invoices / Number of invoices


If it took 150 days to pay 10 invoices, the average payment cycle time is 15 days.