Cost of Trade Credit Formula
Equation for calculate cost of trade credit is,
Cost of Trade Credit = [1+ (Discount % / (1 - Discount %))] [365 / (Payment Days - Discount Days)] - 1
Equation for calculate cost of trade credit is,
Cost of Trade Credit = [1+ (Discount % / (1 - Discount %))] [365 / (Payment Days - Discount Days)] - 1