Service-to-cash cycle time

[c-bo2021]

For business owners running a service business, what is your typical service-to-cash cycle time (the time between service delivery and receipt of payment)?

 

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[Empires]

I take payment upfront because I don't want to be in the debt collection business

 

[Johnny boy]

A month in advance.

Customer signs up for recurring services contract for 12 months, gets billed immediately for the whole month, and work starts after payment is successful, which continues for 12 months and customer re-signs for another year and if they cancel, they pay a 2-month cancellation fee. All non-payers are assumed cancelled and their two month fee is sent to court. Employees are paid 2 weeks after the work is done. The gap between when we get paid and when we pay for the labor is a month in our favor.