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monkey spanners
23-05-2013, 01:54 PM
Just curious what a healthy percentage of a companies turn over would be owed to them? Say you turn over 100K a year, how many K would you expect to be inbetween you and your customers?

eggs
23-05-2013, 04:23 PM
A maximum of three months worth.....then it's twitchy bum time.

Most of our work is installs for Shopfit and M&E contractors and their terms vary fro 30 to 90 days, but to keep cashflow good we also do little split bashes at low profit margins to end users where we get paid on completion.

Eggs

monkey spanners
23-05-2013, 05:25 PM
So there cold be anything between 10% and 30% of your turnover in the pipeline at any one time. I was just curious what an average figure would be. Thanks!

djbe
24-05-2013, 11:19 PM
So there cold be anything between 10% and 30% of your turnover in the pipeline at any one time. I was just curious what an average figure would be. Thanks!

Take the worst and look at 30%. Like it or not you have to figure on waiting at least 3 months for a lot of your money to come back in.

Some people pay fast, some slow, some in between. It all averages out.