[MUSIC] You see there is something fishy here. That is that we've been delaying payments every year. Right in the beginning, we were collecting in 70 days and we are now collecting at 81 days. Now, does it really matter or not? What do you think? Do you think that matters or not? What is the financial impact of this delay? We can think about it in this way, right? If each day you sell 8000 euros. And you delay collecting 11 days, then that's going to have an impact of 11 times 8 which is 88,000 euros. Let me put it in other words. Each extra day of delay is 1,000 euros in sales. Right, and then, if you go back to the case it says that we agreed on 60 days for most customers, and then 90 days for some customers. So we could say that actually the policy is about 70, which is what we had at the beginning, in 2004. Now, if the policy is 70, and then we are in 81 days, the delay is 22 days. If each day is 8,000 in sales, then we are needing, we are in need of 88,000 euros extra. This means that if we were fulfilling well the policy of 70 days, our data sheet would look a little differently right. What do you think it would change? Well probably you agree with me that it is the number in receivables that would change instead of having 649. If we were in the policy of 70 days we would have there 88,000 less. So instead of having 649 we would have 649 minus 88 which would be 561. So a lower number in the asset side would be corresponding to a lower number in the liability side. Where you would have 88,000 euros less either in credit from the bank or in less money to the payables, right. Now, what is the learning here with the days of collection? Well first of all is that we need to understand that each day that we delay our collection of procrastination has a financial impact in the company. And goes directly to the credit needs to the money we ask the bank. Second is that actually if we compare the extra financing needed due to the delayed payment is 88,000. If we compare it to the 500,000 that we are asking the bank, it's almost 20%. So it's not negligible. It's almost 100,000 euros out of the half a million we're asking for, right? And then third and very important is we have to put a person always behind every number. So who is to blame here? Because the conclusion is pretty different, right? Is it a problem of management? That, as we said at the beginning, having 2000 customers is very difficult to manage. So probably the person managing is actually not taking good care of their stuff and then delaying payments, or is it the problem on the economic front of the customers that cannot pay earlier? Now, this we have to ask the manger and we need to understand it well, right. So with this, we are able to understand what are the days of collection. Days of collection is RECEIVABLES over Daily Sales. And we will turn out to move into the days of inventory. [MUSIC]