How do i figure lost profit from late payments?
 

I need a calculation that i can use to determine to what degree late payments
will affect my annual profit. Example is if i make $30,000 profit on
$300,000 revenue what is the effect of 25% of my revenue paid 30 days past
due?

How do i figure lost profit from late payments?
 

Need a bit more info I think. Are you supposed to get a % penalty from the
customer for accounts that end up paying past due? If so what is that %?
You'd then be able to calculate how much more $ you should be getting as a
result of those late accounts.

"Global Eco-tech" wrote:

I need a calculation that i can use to determine to what degree late payments
will affect my annual profit. Example is if i make $30,000 profit on
$300,000 revenue what is the effect of 25% of my revenue paid 30 days past
due?

How do i figure lost profit from late payments?
 

That percent is 2 percent per month

"tim m" wrote:

Need a bit more info I think. Are you supposed to get a % penalty from the
customer for accounts that end up paying past due? If so what is that %?
You'd then be able to calculate how much more $ you should be getting as a
result of those late accounts.

"Global Eco-tech" wrote:

I need a calculation that i can use to determine to what degree late payments
will affect my annual profit. Example is if i make $30,000 profit on
$300,000 revenue what is the effect of 25% of my revenue paid 30 days past
due?