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Effective Annual Interest Rate Calculator for Various Discount Terms

Cash discount calculator which gives you an idea about what interest rate you would have to earn in order to recover the amount of the discount offered

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About this course

description
lessonOverview

A spreadsheet that allows you to plug in any combination of price changes as well as changes in your discount rate and/or the length of time to pay.

This is a tool that Bill Swarens, VP, Credit at Leggett & Platt uses to analyze different scenarios when considering:

  • price reductions
  • changes in the cash discount offered
  • changes in the time offered for a cash discount, and
  • the cost of money

You can change any of the above variables to see what is best for your company - it’s structured so you can plug in any scenario you want.

In addition, the spreadsheet is easy to modify to suit your own needs.

Tip: This is something you can pass on to your company's purchasing agent or buyer, as it's equally valuable for their calculations in negotiating and paying your suppliers.
instructor
name title image description Ins
Bill Swarens VP, Credit at Leggett and Platt      
related
image tag title description link contentType
KPIs and Reporting Change Slow-Paying Customer to Cash-In-Advance Notify customers that your company is changing its terms with the customer to cash-in-advance because of slow payments and a lack of integrity. Read the full article https://academy.highako.com/how-to-change-a-slow-paying-customer-to-cia  
Deductions Resolution Selecting the Right Cash Forecasting Model for Your Business Watch this A/R Manager's tutorial and understand how to evaluate your cash reconciliation and cash forecasting strategies to improve visibility and transparency. https://academy.highako.com/selecting-the-right-cash-forecasting-model-for-your-business-course  

 

About this course

description
lessonOverview

A spreadsheet that allows you to plug in any combination of price changes as well as changes in your discount rate and/or the length of time to pay.

This is a tool that Bill Swarens, VP, Credit at Leggett & Platt uses to analyze different scenarios when considering:

  • price reductions
  • changes in the cash discount offered
  • changes in the time offered for a cash discount, and
  • the cost of money

You can change any of the above variables to see what is best for your company - it’s structured so you can plug in any scenario you want.

In addition, the spreadsheet is easy to modify to suit your own needs.

Tip: This is something you can pass on to your company's purchasing agent or buyer, as it's equally valuable for their calculations in negotiating and paying your suppliers.
instructor
name title image description Ins
Bill Swarens VP, Credit at Leggett and Platt      
related
image tag title description link contentType
KPIs and Reporting Change Slow-Paying Customer to Cash-In-Advance Notify customers that your company is changing its terms with the customer to cash-in-advance because of slow payments and a lack of integrity. Read the full article https://academy.highako.com/how-to-change-a-slow-paying-customer-to-cia  
Deductions Resolution Selecting the Right Cash Forecasting Model for Your Business Watch this A/R Manager's tutorial and understand how to evaluate your cash reconciliation and cash forecasting strategies to improve visibility and transparency. https://academy.highako.com/selecting-the-right-cash-forecasting-model-for-your-business-course