Unpaid customer invoices are sales that have not yet reached the bank. Shortening the average collection period frees cash during the transition, even though the profit per sale stays the same.
An example with numbers
With $365,000 of credit sales a year spread evenly, you invoice about $1,000 a day. Going from 40 to 30 days to collect would free roughly $10,000, if everything else stayed the same.
Try it with your numbers
Enter your sales, your receivables balance and the days of improvement. Check whether seasonality makes the annual average a poor guide for your business.
Example figures for learning purposes. They are not a recommendation and do not replace professional advice.