Buyer Terms & Effective Price Comparison

How to read this sheet

The advance is received before the goods ship, so it is not money anybody is waiting for and only the balance is financed. Financing runs for the contractual term plus whatever that customer actually adds to it, which is entered per row because it is knowledge the exporter has and no formula does; leaving it at zero prices the contract rather than the customer. The finance rate is per row for the same reason - paper against a confirmed letter of credit does not discount at the rate of documents against acceptance - and a row left blank falls back to the house rate. Deductions are the share that buyer habitually takes off the invoice for late delivery, quality claims, markdown support or handling, entered from your own history with them rather than from the contract, which never mentions it. Nothing here rates a buyer's creditworthiness, a country's risk or the probability of not being paid at all; a discounted price is not the same thing as a safe one, and an offer whose effective price wins is not thereby the offer to accept if the instrument behind it is weaker. Simple interest over the days financed is used rather than a compounded or discounted-cash-flow figure, which at these horizons differs in the fourth decimal and would obscure a comparison that is meant to be checkable by hand.