Definition
Credit days are the number of days a customer is allowed to pay after a set starting point, such as the invoice date.
Credit days meaning: a worked example
“30 days credit” is shorthand, but the starting point matters as much as the number. Common bases are the invoice date, the delivery date, or the end of the month in which the invoice falls (the statement date), which can add up to a month.
60 credit days from the statement date
Example- Invoice date
- 5 March
- Invoice amount
- EUR 24,000
- Statement date (month end)
- 31 March
- Plus 60 credit days
- 30 May
Payment due
30 May
Credit days are often confused with the credit limit, which caps how much a customer can owe, not how long they can take to pay.