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About Decision Dynamics

Sales Required to
Cover Bad Debt

Core Consultancy – Process Assessment / Gap Analysis

  Decision Dynamics'
  Unique Methodology

  Executive/Senior
  Management Reports

Supplementary Consulting Services

  Solutions
  Implementation
  Capabilities

  Collection Outsourcer
  Operational Reviews

Overview of a Sample Engagement Agreement

Major Clients
(global experience)

 

 

The immediacy of the ever-present need to grow sales while controlling bad debt is portrayed by the following chart that highlights the severe impact of bad debt.

Your Loss
And your net profit is
 
2%
3%
4%
5%
6%
 
You will need the following amount of
additional sales to offset the loss
$ 1,000
$ 50,000
$ 33,333
$ 25,000
$ 20,000
$ 16,666
$ 5,000
$ 250,000
$ 166,666
$ 125,000
$ 100,000
$ 83,333
$ 10,000
$ 500,000
$ 333,333
$ 250,000
$ 200,000
$ 166,666
$ 25,000
$ 1,250,000
$ 833,333
$ 625,000
$ 500,000
$ 416,666
$ 50,000
$ 2,500,000
$ 1,666,666
$ 1,250,000
$1,000,000
$ 833,333
$ 75,000
$ 3,750,000
$ 2,500,000
$ 1,875,000
$1,500,000
$ 1,250,000
$ 100,000
$ 5,000,000
$ 3,333,333
$ 2,500,000
$2,000,000
$ 1,666,666
To Calculate the amount of additional sales
you need to offset YOUR loss
Enter amount of bad debt :
$ 
(No Commas)
Enter Profit Percent :
   %  
Sales you need to replace bad debt :
$ 

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