Collection Speed
The average number of days between marking a deal as Won and receiving the first payment. Calculated per client from actual receipt history.
Collection speed is calculated per client from actual receipt history.
What is Collection Speed?
Collection speed measures how long each client takes to pay after a deal is marked Won. RunwayCal calculates it from actual receipt history — the gap between when you record a deal as won and when the first payment arrives in Treasury.
Every client gets their own collection speed based on their payment pattern. TechNova might average 44 days. Acme Corp might pay in 12. These individual speeds feed into the cash position forecast, so expected inflows are timed realistically rather than assumed.
Clients are flagged automatically: Fast (green), Normal, Slow (amber), or At Risk (red). No manual data entry required — the metric is derived from your existing deal and receipt data.
Why it matters
Revenue you can't collect on time isn't revenue — it's a cash flow risk. A client who pays 60 days late on a Net-30 contract creates a 30-day gap that your cash position forecast must account for. If that client is also 50% of your revenue, the risk compounds.
Collection speed turns vague "they're usually late" intuitions into precise, per-client metrics that drive your cash forecast and deal risk scoring.
Formula
Collection Speed = Average days between deal Won date and first payment received
Example
TechNova deal marked Won on May 1. First payment received June 14. Collection speed = 44 days. Future TechNova payments are scheduled 44 days after each billing date.
How RunwayCal helps
RunwayCal tracks collection speed per client automatically from deal and receipt data. Speed ratings feed into the cash position forecast, deal risk scoring, and expected receipt scheduling. Mission Control alerts when payments are overdue based on each client's historical pattern.
Common mistakes
- 1Assuming all clients pay within contract terms instead of using actual payment history
- 2Using invoice dates instead of actual receipt dates to measure collection speed
- 3Ignoring collection speed when forecasting cash inflows
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Know when each client will actually pay
RunwayCal tracks collection speed per client and uses it to time your cash forecast accurately.
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