Supplier Payment Terms ROI & Cash Flow Model
Measures the capital efficiency of extended factory credit terms, comparing supplier early payment discounts against reinvesting working capital into PPC ads or new inventory.
Invoice total funded by trade finance lender
Typical PO factor rate: 1.8% - 3.5% per 30 days
Lead time from factory release to buyer payout
Return on Financed Capital (ROI): 59.2%
Taking the funded order yields $29,583 in net profit that would otherwise be lost due to lack of working capital.
How to Use This Tool in 3 Easy Steps
Input Invoice Total
Enter total manufacturing invoice amount due.
Compare Terms Options
Test 2/10 Net 30 vs Net 60 vs 30% deposit / 70% bill of lading.
Review Cash Flow Gain
Inspect working capital freed up and effective annual percentage return.
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Instant Speed
<5ms client execution
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Frequently Asked Questions (FAQ)
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