Calculate a customer's credit limit
Enter the figures from your customer's latest annual accounts. You get the recommended credit limit that Jaarrekening.be also shows on the company page, with its breakdown.
Your figures
Pre-filled with an example. Replace the figures with those of your company or your customer.
Result
Recommended credit limit
- Solvency
- Current ratio
- Net profitability
How the limit is built
- Health factor (solvency, liquidity, profitability)
- EBITDA margin factor
The result is capped at 10,000,000 euro and is never negative.
This tool gives an indication based on the figures you enter. It does not replace advice from your accountant.
How it works
Three components form the base: 10% of turnover, 15% of equity and three times EBITDA. Turnover weighs 40%, the other two 30% each.
That base is multiplied by a health factor: solvency (reference 40%), current ratio (reference 1.5) and net profitability (reference 15%), each capped so one strong ratio cannot inflate the limit.
The EBITDA margin adds up to 30% for a healthy margin and removes up to 15% for a negative margin.
The result is a guide value for the total outstanding amount, not a guarantee. On the company page we compute the same figure automatically from the latest annual accounts.
Frequently asked questions
Where do I find these figures in the annual accounts?
Balance sheet total (code 20/58), equity (10/15), current assets (29/58), debts due within one year (42/48), profit or loss for the year (9904). EBITDA is operating profit (9901) plus depreciation and write-downs (630 to 634). An abbreviated format has no turnover; use gross margin (9900) instead.
Is this the same credit limit as on the company page?
Yes, the same formula. On the company page we fill it in automatically with the latest filed annual accounts, so you do not have to retype anything.
My customer files an abbreviated format without turnover. What do I enter?
Use gross margin as turnover. The limit comes out a little lower, which is prudent: gross margin is always smaller than turnover.
How much of that limit should I actually use?
Many suppliers start at half the calculated limit and raise it after a few correctly paid invoices. Follow the customer so you get an alert if the next annual accounts are worse.
Rather not calculate?
Look up the company and we show the score, the credit limit and the sector benchmark from its latest annual accounts.
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