Net 90 due date calculator
- A supplier with annual sales of 10,000,000 to one buyerAt 90 days the average receivable is 10,000,000 x 90 over 365, about 2,465,753. At an 11 percent borrowing rate, funding it costs about 271,000 a year, or about 2.7 percent of sales.
- Share of marginIf the supplier margin is 6 percent, funding takes about 45 percent of it.
Source: Net 90, decoded by Procurement VMS