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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? |
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#2
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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? |
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#3
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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? |
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