- Cash back in your account
- Debtor days are what clients owe you ÷ annual revenue × 365. Every day you take off releases a day’s revenue: annual revenue ÷ 365 × (your debtor days − the target). It’s a one-off release of cash that’s already yours, not extra income.
- Where the sector figures come from
- Typical and target debtor days, and common payment terms, are from Shuttle’s UK DSO benchmarks for 2026, which compile BACS, Experian, CICM, Atradius and Companies House data. We use the middle of each sector’s average range and the top of its “good” range, so the target is good, not exceptional.
- Late payment charges
- The Late Payment of Commercial Debts (Interest) Act 1998 allows simple interest at 8% above the Bank of England base rate (11.75% today) on the days past your terms, plus £40, £70 or £100 per late invoice depending on its size. We assume 25% of invoices are late, from the Atradius Payment Practices Barometer UK 2026. Average invoice size is our estimate.
- Which invoices qualify
- Invoices to other businesses and public bodies, not to consumers. If you didn’t agree a payment date, an invoice is late 30 days after the client receives it. A contract can set its own late payment terms instead, as long as they’re a substantial remedy.
This is an estimate, not financial or legal advice. Nothing you type here is saved unless you ask for the statement by email.