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This was from the invoice date to the actual receipt of cash into their accounts. This was fairly consistent with other industrial gas supplier’s, Air Products felt they could do better in order to impact their bottom line even more. To improve this they started to employ direct debit of invoices, put a tighter noose of extending credit and sticking with standard terms or encouraging companies to take advantage of small discounts for early payment.
Moving forward to the second quarter of 2007, the company had reduced the “average days to payment” for the 69 to 61 days. While this in itself does not sound like it would impact the bottom line here are a few numbers to consider...
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