TTC stands for Time to Collect. It is the average number of days a business takes to turn an invoice into cash, measured from the invoice date to the date payment is received. A lower TTC means you are collecting faster, which frees up cash; a rising TTC is an early warning that collections are slipping. It is closely related to days sales outstanding (DSO), which is the standard term for the same idea.
Teams track TTC to judge how well their credit terms and collection process are working, and to spot trouble before it shows up in the bank balance.
TTC = Time to Collect.The average days from invoice to payment received.
Lower is better.A shorter TTC means faster cash and a healthier collections process.
Close cousin of DSO.Days sales outstanding is the standard term for the same measure.
Divide your average accounts receivable by total credit sales for the period, then multiply by the number of days in that period. Enter your figures to see your TTC in days.
Because the maths is the same as days sales outstanding, you can use the DSO calculator for a fuller breakdown, and compare it with the average collection period.
A healthy TTC is usually within about 15 days of your stated payment terms; on net 30 terms, a TTC under roughly 45 days is generally considered good. The right target depends on your industry and terms, so track the trend rather than a single number: a TTC that is creeping up period on period matters more than the absolute figure. To pull TTC down, tighten terms, invoice promptly and automate reminders and escalations.
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