How do i figure lost profit from late payments?

G

Global Eco-tech

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?
 
T

tim m

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.
 
G

Global Eco-tech

That percent is 2 percent per month

tim m said:
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.
Click to expand...
 
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