The amount of money that a business receives in monthly bills are referred to as days payable outstanding. In order to find out the number of days payable outstanding, you will need to go through the profit and loss statement which state all of the transactions that occur within the business. From the profit and loss statement you will be able to determine the actual number of days payable outstanding. After you have determined the number of days payable outstanding you can then take that amount and multiply it by twelve. This will give you the number of days payable outstanding. This number is then converted to dollars and added to the total debt.

Days Payable Outstanding

Once you have calculated the number of days payable outstanding, you will then need to look at the balance due and add the number of days payable outstanding to the current balance due. If the balance due is less than the days payable outstanding then there is no current debt and it can be put on a credit report. If the number of days payable outstanding is greater than the balance due, then there are current debt and you will need to file for a collection account. In some instances there may be more than one debt and the balance due will only affect the collection account. In this case the due will be divided evenly between the other two accounts. You will also be required to provide proof of the debt on your credit report.

If you do not have any current debt, then you can work on paying off your debt with a cash advance, a payday loan or an equity loan. By paying down a large amount of money on your debts you will increase your debt-to-income ratio and reduce your chances of debt.