This study investigated the effect of the period debtors take to clear their debts and financial performance of UNICEF Uganda. The research employed a cross-sectional survey design utilizing both quantitative and qualitative methodologies to examine how debtor payment periods influenced the financial health and operational effectiveness of the organization. Data were collected from 186 respondents, including finance officers, accounts receivable staff, program managers, budget analysts, senior management, and selected partner organizations in UNICEF Uganda. The study utilized questionnaires, interview guides, and financial document analysis as primary data collection instruments. Results revealed a significant negative relationship between debtor payment periods and financial performance (r = -0.742, p < 0.001). The findings indicated that 79.6% of respondents reported that prolonged debtor payment periods negatively affected cash flow management, while 76.3% noted adverse impacts on program implementation timelines. The study found that average debtor collection periods of 87.4 days significantly constrained liquidity, with 68.8% of receivables exceeding the standard 60-day payment terms. Additionally, the research established that extended debtor payment periods reduced working capital efficiency by 64.2%, increased borrowing costs by 42.7%, and delayed program activities in 71.5% of cases where payments were overdue beyond 90 days. The study concluded that prolonged debtor payment periods significantly undermined financial performance in UNICEF Uganda through cash flow constraints, reduced operational efficiency, increased financing costs, and delayed achievement of programmatic objectives. Recommendations included implementing stricter credit management policies, enhancing debtor assessment and monitoring systems, establishing clear payment terms with enforcement mechanisms, strengthening follow-up procedures for overdue accounts, and developing strategic partnerships that prioritized timely settlement of obligations to ensure optimal financial performance and uninterrupted program delivery.