This measure provides an input to the analysis of the liquidity of an organisation’s receivables. This can be used in designing strategy relating to the balance between retaining slow paying customers and avoiding cash-flow congestion.

BPIR Categories

4.2.1 Manage sales & sell products & services
15.6.11 Financial management
4.3.1 Accept orders & maintain customer accounts
11.2.3 Process accounts receivable, credit, & collections
11.1.4 Manage cash flow
15.6.4 Market, selling & invoicing processes

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