How is the buy price being calculated? (for financier)

We use a dynamic pricing model to calculate the invoice buy prices. Dynamic means that the buy price is being changed on a daily basis.

How does it work?

Let's say that you and SupplierPlus have agreed on a 2.0% interest on a 360-day basis against Debtor A. So this means that the daily interest is 2 / 360 = 0.0056% interest per day.

Example A - The approved amount of an invoice is 100 000€ and the payment term is 78 days.

Interest per 78 days --> 0.0056 * 78 = 0.44%

Buy price --> 100 000€ - 440€ (0.44% / 100 000€)

Your buy price is 99 560€ and your profit for 78 days is 440€.

Example B - The approved amount of an invoice is 100 000€ and the payment term is 33 days.

Interest per 33 days --> 0.0056 * 33 = 0.18%

Buy price --> 100 000€ - 180€ (0.18% / 100 000€)

Your buy price is 99 820€ and the profit for 33 days is 180€.

Example C - The approved amount of an invoice is 100 000€ and the payment term is 16 days.

Interest per 16 days --> 0.0056 * 16 = 0.09%

Buy price --> 100 000€ - 90€ (0.09% / 100 000€)

Your buy price is 99 560€ and profit for 16 days 90€.

How can you access the interest (%) information?