What is promissory note or bill discounting and how does it differ from factoring?
In discounting, the bank advances a specific instrument, promissory note, bill of exchange, and the assignor is normally liable if there is a default…
What is an aged customer accounts receivable schedule and what decisions does it unlock?
It is classifying customer debt by buckets: 0-30, 31-60, 61-90, and over 90 days. It allows you to cut off credit in time, prioritize collections
What is a “debt schedule” and why does it prevent surprises, even without growing?
It is a simple table with future instalments per month, separating principal, interest and extraordinary maturities. It lets you see months of…
Which fees usually «inflate» a credit facility and how to compare them properly?
Look at the opening fee, renewal fee, non-utilisation fee, and the cost for exceeding the limit. A real comparison is made using a usage scenario
What is a credit line and in which cases is it better than a loan?
It is a line to cover working capital peaks, you pay interest only on the amount drawn and it is usually renewed. It is better than a loan if the need…
What does fixed cost absorption measure?
It indicates what part of your structure is covered by the current level of activity. It helps you see whether growing improves the margin or simply covers costs
What does the billable occupancy rate indicate?
It compares paid hours with hours actually sold. If you have a lot of activity but low billable occupancy, the problem is not always
What does the margin per billable hour tell you about your real profitability?
It measures how much you earn for each hour you actually sell to the client. It is very useful in offices, workshops, installation companies, consulting…
What is the technical minimum price of a one-off sale?
It is the price below which that operation starts to destroy value. It helps decide whether to accept a special order
What is the difference between margin and markup, and why are many prices miscalculated?
Margin is calculated on the selling price and markup on the cost. Confusing them leads many companies to believe they are earning more than they actually are.
