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The attentive To the Point reader has already noticed. Our FAQ section has introduced a new concept. Instead of sorting out one theme based on ten specific questions, we are now bringing different themes to your attention based on one question. Not randomly, but based on the questions that we have recently received from our customers.

Initial situation Impact loss of receivable Effort to recover initial situation
Turnover (EUR) 2,000,000 1,950,000 2,050,000
Fixed costs (EUR) 600,000 600,000 600,000
Variable costs (EUR 25/hour) 1,000,000 1,000,000 1,050,000
Result (EUR) 400,000 350,000 400,000

Taking our assumptions into account, Robin must realise an additional turnover equal to double the lost receivable in order to recover his result. The higher the variable costs of the cleaning company (e.g. wages, travel costs, etc.), the greater the effort. Or still: the lower the (variable) margin percentage, the greater the effort to compensate the loss.

In these uncertain times, it is thus in the interests of an entrepreneur to pre-emptively control receivables when acquiring a new customer. This can be done by screening the customer’s financial situation, clearly describing the order or agreeing on clear sales terms and conditions. In day-to-day management, fast invoicing is essential. If there are still problems with the collection of the invoice, then finding a compromise is important.