2 min read
Definition
Creditor days = (trade creditors ÷ annual purchases) × 365. It is the mirror of debtor days, showing how long you take to pay suppliers. Sensible use lengthens the cash you hold; abuse damages supplier goodwill.
In plain terms
It is how long you take to pay your bills. Taking fair terms keeps cash working in your business a little longer, but stretching suppliers too far risks supply and discounts.
Why it matters for your company
Balancing creditor days against debtor days shapes your working-capital cycle. Use the creditor days calculator.
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