by Dr Greg Chapman
This is another in the series of posts on Small Business Best Practice Benchmarks.
The Creditors measure refers to the average number of days it takes to make a payment by a business. While there is a temptation to delay payment for as long as possible to maximise working capital and assist cashflow, especially if a business’ Debtors are slow in paying; but this is not what the best small businesses do.
Dr Greg Chapman is the Director of Empower Business Solutions and The Australian Business Coaching Club and is Australia's Leading Advisor on Emerging Businesses and provides Coaching and Consulting advice to Australian Small Business Owners in Marketing & Business Strategies Planning & Systems. He is also the author of The Five Pillars of Guaranteed Business Success and Price: How You Can Charge More Without Losing Sales.