How to calculate it
Days between submitting an application for payment and receiving the certificate or payment notice, averaged by customer.
Why it matters
This is why the accounts say profitable and the bank says otherwise. Work done, applied for, and sitting in someone's approval.
The Taxtful view
A customer whose lag is creeping up is either disorganised or short of cash. Either way, price the next tender accordingly.
Every Taxtful client sees this number on their Taxtful View each month, with the benchmark alongside. Benchmarks are drawn from our own client base and published sector data; ranges vary by trade and contract type.
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