What is days sales outstanding (dso)?
Days Sales Outstanding (DSO): The average number of days it takes you to collect an invoice.
How it works
DSO = (Accounts Receivable / Total Credit Sales) × Days. A DSO of 55 means you're financing 55 days of your customer's operations. Factoring effectively drops your DSO to 1–2 days without changing your customer's terms.
Where you will run into it
Days Sales Outstanding (DSO) comes up most often in invoice factoring conversations. See how invoice factoring works, including real cost ranges and timelines.
Days Sales Outstanding (DSO) questions
The average number of days it takes you to collect an invoice.
DSO = (Accounts Receivable / Total Credit Sales) × Days. A DSO of 55 means you're financing 55 days of your customer's operations. Factoring effectively drops your DSO to 1–2 days without changing your customer's terms.
Funding Requirements Checklist for US manufacturers
See exactly what underwriters actually look at for factoring, PO financing, equipment, working capital, ABL, and SBA before you fill out a single application
- What documents you need for each program
- Typical time-to-fund by program
- Common disqualifiers worth knowing up front
- How Manufactor Finance is compensated — $0 fees to you
Questions before you apply?
Send a request. Our team reviews it, and if a funding partner thinks they can help, a specialist from that partner contacts you. No pressure and no obligation.
Ready to keep production moving?
Start with a quick inquiry or a phone call. We'll tell you exactly what the right program requires. At no charge.
Apply. Fund. Deliver. No obligation.
AI-assistedCalls, texts, and chats may be answered by Mary, our AI assistant, who takes your details and passes your request to our team. Or email us instead.