Cycle time in days for credit approval

This measure calculates the average number of calendar days (including weekends) it takes to receive credit approval. It is a Cycle Time measure that helps companies analyze the duration of the "process customer credit" process from beginning to end.

Benchmark Data

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Measure Category:
Cycle Time
Measure Id:
100561
Total Sample Size:
1,825 All Companies
Performers:
25th
Median
75th
Key Performance
Indicator:
Yes

Compute this Measure

Units for this measure are days.

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Cycle time in days for credit approval

Key Terms

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Cycle Time

Cycle time is the total time from the beginning of the process to the end. This includes both time spent actually performing the process and time spent waiting to move forward.

Median

The metric value which represents the 50th percentile of a peer group. This could also be communicated as the metric value where half of the peer group sample shows lower performance than the expressed metric value or half of the peer group sample shows higher performance than the expressed metric value.

Measure Scope

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Cross Industry (7.3.0)

  • 9.2.1.1 - Establish credit policies (10789) - Creating guidelines for providing advances. Set up credit standards, credit terms, and collection policies.
  • 9.2.1.2 - Analyze/Approve new account applications (10790) - Checking and accepting new requests based on eligibility criteria. Analyze the status of applicants and requirements to be met for a new account.
  • 9.2.1.3 - Analyze credit scoring history (14187) - Reviewing past credit scores to determine the if a line of credit will be extended to potential customers. This could also include extending additional credit to existing accounts.
  • 9.2.1.4 - Forecast credit scoring requirement (14188) - Planning credit score requirements based on established credit policies.
  • 9.2.1.5 - Review existing accounts (10791) - Evaluating existing account holders and their past performance. Regularly review existing accounts to get the required information about the status at present.
  • 9.2.1.6 - Produce credit/collection reports (10792) - Preparing account payable reports about payments to be made according to accounting rules and principles, and providing the reports to management.
  • 9.2.1.7 - Reinstate or suspend accounts based on credit policies (10793) - Closing or restarting accounts according to changes made in credit policies.