Collection Period definition: Copy, customize, and use instantly
Introduction
The "Collection Period" refers to the time frame within which a company or organization is expected to collect its receivables or outstanding payments from customers or clients. This period is essential for managing cash flow, as it determines how quickly a business can convert its credit sales into cash. The "Collection Period" is usually measured in days, and a shorter "Collection Period" indicates more efficient collection practices.
Below are various examples of how "Collection Period" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Collection Period" in financial agreements
This definition ties the "Collection Period" to financial agreements.
"Collection Period" refers to the time span in which payments or receivables are expected to be collected, typically measured from the date of the invoice until the payment is received in full.
Definition of "Collection Period" in commercial loan agreements
This definition connects the "Collection Period" to commercial loan agreements.
"Collection Period" means the number of days or months during which the borrower must collect outstanding payments or receivables before making a loan repayment.
Definition of "Collection Period" in trade receivables management
This definition applies the "Collection Period" to trade receivables management.
"Collection Period" refers to the average number of days it takes for a company to collect outstanding receivables from its customers after a sale has been made.
Definition of "Collection Period" in cash flow management
This definition ties the "Collection Period" to cash flow management.
"Collection Period" means the time period required for a business to convert its credit sales into cash, impacting the company's overall liquidity and cash flow management.
Definition of "Collection Period" in credit policies
This definition links the "Collection Period" to credit policies.
"Collection Period" refers to the duration specified in the company’s credit policies within which customers are expected to settle their outstanding invoices or accounts payable.
Definition of "Collection Period" in invoicing agreements
This definition connects the "Collection Period" to invoicing agreements.
"Collection Period" means the agreed-upon period from the issuance of an invoice to the due date for payment, during which the customer must pay for goods or services rendered.
Definition of "Collection Period" in accounts receivable reports
This definition ties the "Collection Period" to accounts receivable reports.
"Collection Period" refers to the time taken for outstanding receivables to be collected, usually presented in accounts receivable aging reports to assess the company’s ability to collect debts.
Definition of "Collection Period" in customer credit terms
This definition applies the "Collection Period" to customer credit terms.
"Collection Period" refers to the period defined in the customer’s credit terms, within which the customer is required to make payment for goods or services received on credit.
Definition of "Collection Period" in supplier agreements
This definition links the "Collection Period" to supplier agreements.
"Collection Period" refers to the length of time a company has to settle payments with its suppliers, starting from the date of invoice issuance.
Definition of "Collection Period" in trade credit arrangements
This definition connects the "Collection Period" to trade credit arrangements.
"Collection Period" means the period during which a company is allowed to collect payment on goods provided on credit, typically agreed upon in trade credit terms with clients.
Definition of "Collection Period" in accounts payable
This definition applies the "Collection Period" to accounts payable.
"Collection Period" refers to the time taken for a business to receive payment from customers for outstanding amounts on accounts receivable before the payment is due.
Definition of "Collection Period" in loan repayment schedules
This definition ties the "Collection Period" to loan repayment schedules.
"Collection Period" refers to the period set within a loan agreement, indicating the maximum time allowed for collecting funds before repayment obligations are triggered.
Definition of "Collection Period" in debt recovery
This definition connects the "Collection Period" to debt recovery.
"Collection Period" means the time frame in which a debtor is expected to pay back the outstanding debt, beyond which recovery actions may begin.
Definition of "Collection Period" in profitability analysis
This definition links the "Collection Period" to profitability analysis.
"Collection Period" refers to the number of days required to collect outstanding receivables, impacting the business's profitability by reducing the time funds are tied up in credit sales.
Definition of "Collection Period" in working capital management
This definition ties the "Collection Period" to working capital management.
"Collection Period" means the average time it takes for a business to collect outstanding receivables, which impacts the calculation and efficiency of working capital management.
Definition of "Collection Period" in collection cost analysis
This definition applies the "Collection Period" to collection cost analysis.
"Collection Period" refers to the period during which collection efforts are made, influencing the cost analysis of collecting overdue receivables.
Definition of "Collection Period" in short-term financing
This definition connects the "Collection Period" to short-term financing.
"Collection Period" refers to the period within which a company needs to collect its receivables, influencing its need for short-term financing to cover any cash flow gaps.
Definition of "Collection Period" in financial forecasting
This definition links the "Collection Period" to financial forecasting.
"Collection Period" refers to the estimated time frame within which the business expects to collect receivables, helping to forecast cash flow and future financial performance.
Definition of "Collection Period" in sales agreements
This definition applies the "Collection Period" to sales agreements.
"Collection Period" means the agreed-upon duration after the sale during which the buyer is expected to make payment for the purchased goods or services.
Definition of "Collection Period" in client payment schedules
This definition ties the "Collection Period" to client payment schedules.
"Collection Period" refers to the time allotted in the client’s payment schedule to remit payment for services rendered or goods provided, according to the terms of the contract.
Definition of "Collection Period" in revenue recognition
This definition connects the "Collection Period" to revenue recognition.
"Collection Period" means the period during which receivables are expected to be collected, impacting when revenue can be recognized under accounting standards.
Definition of "Collection Period" in budget planning
This definition links the "Collection Period" to budget planning.
"Collection Period" refers to the estimated duration for collecting payments from receivables, which helps in determining cash flow projections for budgeting purposes.
Definition of "Collection Period" in credit risk management
This definition ties the "Collection Period" to credit risk management.
"Collection Period" refers to the time span within which a business must collect payments from clients, which is a key factor in assessing the credit risk associated with the company’s receivables.
Definition of "Collection Period" in contract payment terms
This definition connects the "Collection Period" to contract payment terms.
"Collection Period" means the time frame within which payments are due under the contract terms, typically starting from the date the invoice is issued.
Definition of "Collection Period" in cash conversion cycle
This definition links the "Collection Period" to the cash conversion cycle.
"Collection Period" refers to the length of time taken for a company to collect its receivables, which is an integral part of calculating the cash conversion cycle and liquidity.
Definition of "Collection Period" in financial risk assessment
This definition ties the "Collection Period" to financial risk assessment.
"Collection Period" refers to the duration within which receivables are collected, impacting the overall financial risk of the business.
Definition of "Collection Period" in payment defaults
This definition applies the "Collection Period" to payment defaults.
"Collection Period" refers to the period after which payment defaults may occur if the customer has not settled the outstanding amount, triggering additional actions or penalties.
Definition of "Collection Period" in vendor management
This definition connects the "Collection Period" to vendor management.
"Collection Period" refers to the time allotted for a company to collect payments from customers for outstanding invoices before triggering vendor-related consequences or adjustments.
Definition of "Collection Period" in credit terms adjustment
This definition ties the "Collection Period" to credit terms adjustment.
"Collection Period" means the period within which a business must adjust its credit terms or collection practices to ensure timely receipt of payments from customers.
Definition of "Collection Period" in tax obligations
This definition links the "Collection Period" to tax obligations.
"Collection Period" refers to the time frame within which a business is required to collect receivables to meet its tax payment obligations.
Definition of "Collection Period" in default penalties
This definition connects the "Collection Period" to default penalties.
"Collection Period" means the period allowed for payment, after which the client may incur default penalties or interest charges according to the terms of the agreement.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.