Customer Payment Speed (DSO)

Customer payment speed, or Days Sales Outstanding (DSO), calculates how quickly invoices convert to cash (trade debtors ÷ revenue × 365). Long payment periods stretch working capital and reduce free cash flow, hurting valuation. Agencies supplying blue-chip corporates often accept 45-60 day terms but can mitigate with invoice-discounting facilities; a robust credit-control narrative reassures acquirers and lenders.