DSO is driven by customer payment behavior and ability to pay. Customer payment behavior and ability to pay can be influenced by internal and external factors. Internal factors are easier to understand and quantify, making

The types of payment channels you offer can affect customer payment behavior. If you are frustrated by unsuccessful efforts to reduce DSO, and you have not changed your payment channels for some time, it’s

Late payment behavior increases DSO. If a large percentage of your customers are late payers, they can cause DSO to expand enough to snare you in a cash trap. Collection bottlenecks can make reducing

Getting a new customer set up in your system and completing transactions without a problem is a major step in establishing a lasting business relationship. Setting up a new customer in your system can

Knowing your customer payment behavior can help you to control and reduce DSO. If you know your customer payment behavior you can shape your Credit Policy to achieve the DSO level that is a

DSO can be a difficult AR metric to analyze and understand. It can be misinterpreted because of seasonal sales impacts and large swings in sales due to sales promotions, new product introductions and changes

Collection Policy has a direct impact on the quality of AR and the DSO your company will need to finance. It is the formalization of the practices and procedures used to collect AR and

Credit Policy impacts DSO in a number of ways. One way is through Credit Standards. The Credit Standards you set will ultimately determine the risk you take with AR and the DSO your company