How much cash is stuck in unpaid invoices?
Slow payments do not just delay revenue; they lock up cash you could be using. See how much faster invoicing and automated reminders could free up.
How the calculation works
At any moment, the money customers owe you is roughly your daily revenue × the average days it takes to get paid. Daily revenue is monthly revenue × 12 ÷ 365. Cut the days and the same revenue ties up less cash.
- Cash freed up = daily revenue × (days today − target days).
- Borrowing cost avoided = cash freed × your interest rate, per year.
- Chasing cost = hours per week × 52 × hourly cost.
Where the days go
Most late payments are slow for boring reasons: the invoice went out a week after the work, it lacked a purchase order number, it landed in the wrong inbox, or paying required a check. Automation removes those delays:
- Create and send the invoice the moment the job closes or the order ships
- Include a pay-online link and the details the customer's accounts team needs
- Send polite reminders before the due date, on it, and after it, on a schedule
- Retry failed card payments and ask customers to update expired cards
- Alert a person only when an account needs a real conversation
See the invoicing and payment reminder guide for the full workflow.
Frequently asked questions
What is DSO?
Days sales outstanding is the average number of days it takes to collect payment after a sale. A simple estimate is accounts receivable ÷ revenue for the period × the number of days in the period.
What is a good number of days to get paid?
Close to your stated payment terms. If your terms are net 30 and you average 45 days, the 15-day gap is mostly process friction that reminders and easier payment can close.
Will automatic payment reminders upset customers?
Not when they are polite, accurate, and well timed. Most customers appreciate a reminder before the due date with a direct payment link. Keep the tone friendly and stop reminders the moment a payment arrives.
Can automation handle partial payments and disputes?
It can detect them and route them to a person, which is usually the right approach. Automation handles the routine majority; people handle the conversations that need judgment.