Accounts receivable aging cash impact

Quantify the cash impact of slow-paying customers — outstanding AR, average days sales outstanding (DSO), and cost of capital tied up.

Monthly revenue

Average DSO (days)

Net 30 healthy = ~30-45 actual DSO. Net 60 = 60-80.Your cost of capital %

Borrowing rate or required return on cash.Bad debt write-off rate %

1-3% typical B2B services.

Annual cost of slow-pay

Show the work