How the trade finance calculator works

What you enter

Supplier invoice (I), facility percentage (F), term in whole days (T) and a monthly fee percentage (m) from your quote or your own assumption. The monthly fee is a simple fee per 30 days. It is not an annual interest rate, an APR or an amortising loan repayment.

Amount financed and your contribution

Amount financed  A = I × F ÷ 100
Your contribution   = I − A

Money figures are rounded to the penny. The fee is calculated in one step and rounded once.

Fee conventions

Providers count time differently. Choose the one that matches your quote.

Daily pro-rata:          periods P = T ÷ 30
Per started 30 days:     periods P = ceiling(T ÷ 30)

Fee = fee basis × m ÷ 100 × P

The fee basis is either the amount financed (A) or the full supplier invoice (I), depending on your quote.

When the fee is paid

At maturity:  repayment = A + fee,   net advance = A
Upfront:      repayment = A,         net advance = A − fee

With an upfront fee the supplier still needs the full invoice, so the cash you need on day 0 is the invoice less the net advance: your contribution plus the fee. The total funding cost shown is the fee only. It does not include the cost of the goods.

Gross margin impact

If you enter an expected customer receipt (R) without a margin, the calculator uses an invoice-only basis that ignores freight, duty and every other cost:

Profit before finance = R − I
Profit after finance  = R − I − fee

If you also enter a gross margin (g), it is treated as already net of your other direct costs, so only the finance fee is subtracted, to avoid counting costs twice:

Profit before finance = R × g ÷ 100
Profit after finance  = profit before − fee
Margin after (%)      = profit after ÷ R × 100

The percentage-point reduction is margin before less margin after. Overheads, tax and currency movements are not modelled.

Timeline and shortfall

The timeline lists the advance, the supplier payment, any upfront fee, the repayment and, if entered, the customer receipt as separate events. If you leave the receipt day blank, the receipt is assumed on the term day and this is stated. If the receipt falls after the term, repayment is still due on the term day. The shortfall compares the receipt expected by the term day with the repayment, assuming no other cash. It is not an assessment of your liquidity.

Risks the calculator does not capture

• Customer non-payment or late payment.
• Supplier failure, short shipment or goods not to specification.
• Shipping delays, damage and the cost of any extension, which a provider may refuse.
• Exchange rate movements on foreign-currency supplier payments.
• Per-drawdown, arrangement, documentary and late-payment charges.

Providers may require security, debentures or personal guarantees. These are lender-specific and have not been verified for any provider.

Status of these figures

Results are illustrative. Costs vary by lender and applicant, additional fees may apply, any facility is subject to assessment and nothing here is a binding offer. Ocean Capital Exchange introduces businesses to third-party providers and is not a lender. We make no guarantee about the regulatory status of any trade finance product. This disclosure is awaiting owner review before production.