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Finance & Payments

Days Payable Outstanding (DPO)

Also known as: DPO

Days payable outstanding (DPO) is the average number of days a company takes to pay its suppliers after receiving an invoice.

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DPO measures how long a business holds onto cash before settling supplier bills. A higher DPO means the company retains cash longer, improving working capital — but pushed too far it can strain supplier relationships and risk losing early-payment discounts or preferential treatment.

Procurement and finance manage DPO deliberately: negotiating longer credit terms raises it, while capturing early-payment discounts lowers it. The right level balances cash-flow benefit against supplier goodwill and financing economics.

Frequently asked questions

What is days payable outstanding?
DPO is the average number of days a company takes to pay its suppliers after invoicing. A higher DPO means the company holds cash longer.
Is a higher DPO better?
Up to a point — it improves working capital by retaining cash longer. Pushed too far it can damage supplier relationships and forfeit early-payment discounts.

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Operating model · diagram

  1. 01

    AI-first software

    AI-first procurement software for long-tail spend

  2. 02

    Live marketplace

    A live B2B marketplace

  3. 03

    Human services

    Human sourcing and support

  4. 04

    Optional add-on

    Fulfilment support for merchants