average payment period


APP. The number of days a company takes to pay off credit purchases. It is calculated as accounts payable / (total annual purchases / 360).

Use this term in a sentence

You should always know how long your average payment period will be so that you can be prepared when the time comes.

​ Was this Helpful? YES  NO 4 people found this helpful.

The average payment period was always the same and we were happy that nothing too unexpected happened with it, or we would get worried.

​ Was this Helpful? YES  NO 11 people found this helpful.

My boss was angered to learn that our company's credit quality had suffered after our average payment period went up under the new accounts payable regime.

​ Was this Helpful? YES  NO 10 people found this helpful.

Show more usage examples...

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 outstanding balance accounts payable turnover