How the early payment benefit calculator works
For a supplier, the hardest part of a B2B sale is often the wait after the work is done. Goods are delivered, the invoice is raised, and then weeks or months pass before payment lands. During that wait, the value of the sale sits locked in receivables rather than working in your business. This tool puts a figure on what changes when that wait is compressed to as little as two days after delivery.
The calculation is deliberately simple. Your monthly sales become a daily sales value; multiplied by the number of days your payment is brought forward, that gives the cash unlocked from receivables. Applying your own cost of working capital to that cash gives an annual value for holding less of it in limbo. This is a payment-timing benefit inside an ordinary trading relationship: you sell, you deliver, you are simply paid sooner. Every figure here is a directional planning estimate to help you weigh the value of being paid sooner.
Common questions
What is the early-payment benefit for a supplier?
When you sell to businesses, the gap between delivering goods and being paid ties up your cash. Every day that gap shrinks, working capital is freed up to buy stock, cover payroll or take on the next order. The early-payment benefit is the value of closing that gap — the cash unlocked from your receivables plus the working-capital cost you no longer carry while you wait to be paid.
How does the calculator estimate cash unlocked?
It converts your monthly B2B sales into a daily sales value, then multiplies that by the number of days your payment is accelerated. The result is the one-off reduction in outstanding receivables — the cash that lands in your account sooner because you are paid days after delivery instead of weeks or months later.
How is the annual working-capital benefit calculated?
Carrying receivables has a cost: the return you could earn on that cash, or the cost of the working capital you use to bridge the wait. The tool applies your stated cost of working capital to the cash unlocked to give an annual figure. It is a planning estimate of the value of being paid sooner, not a quoted rate or an offer.
What exactly does this calculator model?
It models faster settlement of a genuine trade sale — you deliver, and the marketplace pays you as early as two days after delivery instead of on long terms. The benefit comes purely from payment timing within an ordinary trading relationship. Treat the figures as directional planning inputs.
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