Credit Payment Period Wizard

Related Information:

The Creditor Payment Period measures the average time it takes you to pay your creditors.

Creditor Payment Period =
Creditors x 365/Sales

Performance Ratios

The Creditor Payment Period is a 'performance ratio', which means that it indicates the efficiency of a business. Efficiency and performance are linked, as efficient businesses are usually more profitable.

This ratio gives you one insight into your business. To determine the full financial performance of your business, you will also need to analyse your financial statements and calculate the other financial ratios.

Tips for Finding Figures

Creditors are Trade Creditors or Accounts Payable in your Current Liabilities on your Balance Sheet.
Sales are found in your Profit and Loss Account.

Note: This information is provided for illustrative purposes only and is based on the accuracy of information provided. It does not constitute a contract. We are not recording and will not use the information quoted by you in our calculators unless it is being used as part of a product application.

First Trust Bank is a trademark of AIB Group (UK) p.l.c. (a wholly owned subsidiary of Allied Irish Banks, p.l.c.), incorporated in Northern Ireland. Registered Office, 4 Queen's Square, Belfast, BT1 3DJ. Registered Number, NI 18800. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. First Trust Bank is covered by the Financial Services Compensation Scheme, established under the Financial Services and Markets Act 2000.

First Trust Bank subscribes to the Lending Code and is covered by the Financial Ombudsman Service. Details of the Lending Code are available on request from any First Trust Bank branch or from the Lending Standards Board.

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