A deferred payment is one of the ways to pay off a debt, according to which the date of its payment is postponed for a certain period exceeding the terms of the agreement. This concept is used in consumer lending, as well as in retail and wholesale trade. Its calculation depends on the amount of the loan provided and the client's solvency.
Instructions
Step 1
Use the method of determining the optimal loan term to calculate the deferred payment. It allows you to assess the effectiveness of a commercial transaction and determine the acceptable conditions for its implementation. This calculation helps to compare the additional income received from the provision of deferred payment, with the possible risks.
Step 2
Calculate the cost of the raised capital per day. To do this, determine the amount of costs for the purchase of products, storage, transportation services and other costs for the goods. Multiply this value by the average cost of borrowed capital, which is determined by the terms of the agreement, and is actually the interest rate on the loan provided.
Step 3
Divide this value by 365 days. Also, this value can be defined as the average return on investment. In this case, an investment is an issued loan or the value of a product, for which a deferral is determined.
Step 4
Determine the trade margin for the purchased item or received credit, for which the deferred payment is calculated. It is equal to the realizable value less the cost of purchasing the goods. If the company is a manufacturer, the trade margin will be equal to the difference between the selling price and the cost of production.
Step 5
Calculate the possible variable costs that are associated with executing the transaction and providing the loan.
Step 6
Calculate the grace period, which is equal to the difference between the trade margin and the possible variable costs divided by the cost of capital raised per day. Adjust the obtained value depending on the risks of non-repayment of receivables.
