Payment Terms Optimizer

Suppliers often offer terms like "2/10 Net 30", meaning you get a 2% discount if you pay within 10 days, otherwise the full amount is due in 30 days.

By declining the discount, you are essentially "borrowing" the money for the remaining 20 days at a cost of 2%. While 2% sounds small, when annualized over the year, this often equates to an APR of **36.7%**, which is far higher than most bank loans.

Smart trade finance involves taking these discounts whenever your working capital cost is lower than the effective APR of the terms offered.