Net Terms Cost Calculator
Offering net 30, 60, or 90 terms to retailers isn't free. Model the true carrying cost of outstanding receivables, compare early payment incentives, and see your effective AR cost.
What it actually costs to wait
Offering net 30, 60, or 90 terms to retailers isn't free. Model the true carrying cost of outstanding receivables, compare early payment incentives, and see your effective AR cost.
How the cost is built
- Average AR = revenue on terms x average net days / 365.
- Capital carrying cost = average AR x cost of capital. Bad debt = revenue on terms x write-off rate. Admin = revenue x AR admin %.
- Early pay discount: annualized cost = discount x 365 / (net days - accelerated days). The program pays off when the capital saved on faster payments exceeds the discounts given.
Keep going
Cash Flow Gap Calculator
The gap between paying your supplier and getting paid by your retailer is real cash out of pocket. Model the days and dollars of your working capital gap.
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Compliance and legal
The tools are free. QVINTA does the work.
QVINTA finds the shops that fit your brand, picks the product each one is missing and drafts the pitch, every week. Soon open for beta testing.