CREDIT POLICY
CALCULATOR

It's Free!
You can use our calculator for best results.

Schedule a consultation
Accounts Revievables & Company Demographics:
Email Address
Weighted Cost of Capital or Opportunity Cost The weighted average cost of capital (WACC) is a calculation of a business cost of a capital in which each category of capital is proportionately weighted. All sources of capital, including common stock, preferred stock, bonds, and any other long-term debt, are included in a WACC Calculation. If unsure, use 8.25% as a starting point.
A business's WACC increases as the rate of return on equity increases, as an increase in WACC denotes a decrease in valuation and an increase of risk.
%
Actual Days Outstanding ( DSO’s)
Average Transaction Amount
$
How often are Invoices Created
Number of Invoices Per Cycle
How much does it cost to produce an invoice Research firms such as Levvel Research have noted that the average cost to process a single invoice can be up to $15.00 per invoice
$
Do you send out a 2nd invoice after 30 Days.
What % of Customers get a 2nd Invoice
%
Do you follow up with a Phone Call or other method to collect funds after 30 days?
What does this cost Collection costs include the time it takes to contact delinquent accounts, correspondence and outside collection fees.
$
Cost of Postage & Envelope
$
What does it cost to process a check Bank of America estimates the cost to process a check to be usually between $4.00 and $20.00, with a lower average of $6.00 per check.
$
What were your total revenues last year
$
What were your credit write offs last year
$
Targeted Gross Margin
%
Do you have a Lock Box
What do you pay on average to enter data from the Lock Box per invoice/transaction Typical charges are 1 cent per key stroke
$
Annual Lockbox Costs
$
What does it cost you to Credit Risk a single customer Cost to perform annual credit valuations on each customer varies by business, a good number to use is $25.00 which includes credit reports and the time analyzing the accounts ability to pay.
$
Percentage of Repeat Customers
%
Current Terms Offered i.e. Discount % if paid within x days:
%
What % of payments were made within Discount Period
%
Estimated Effective Rate for Credit Cards Credit Card Effective Rate equals the Total Credit Card Fees/Credit Card Volume.
%
ACH per Transaction Fee Typical fees range from 0.40 to 0.65 per ACH Transaction.
$

UNLOCK THE POWER OF PAYMENTS

See why companies choose PayLink to unify their purchase channels and improve the customer experience.

GET STARTED NOW