average settlement period

Definition

The average time taken for a business to pay its creditors, or the average time for debtors to pay what is owed to the business. Calculation of average settlement periods can help a business evaluate the likely amount of time that a customer will take to fulfill an outstanding debt, which can have an effect on cash flows of the business.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
average revenue per unit (ARPU) average shareholders' equity