International trade financing cost.

Trade finance bridges the cash gap between paying suppliers and receiving customer payment. Cost: interest rate on financed amount (typically 5-12%) × finance period (30-180 days), plus arrangement fee (0.25-1%). Effective APR usually 10-25% when annualised - expensive but often cheaper than the alternative (not fulfilling the order).

500,000 transaction at 8% finance rate for 90 days + 0.5% arrangement fee. Interest: 500k × 8% × 90/365 = 9,863. Arrangement: 500k × 0.5% = 2,500. Total: 12,363 (2.47% of transaction). Effective APR: ~10%. Reasonable for well-understood trade with reliable customer.

Trade finance options: invoice financing (advance against customer invoice), supply chain finance (bank pays supplier early, buyer pays bank later), letters of credit (bank guarantees payment), factoring (sell invoices at discount). Each has different cost structure and risk profile. Choose based on transaction type, counterparty reliability, and cash timing needs.

A worked example

Try the defaults: transaction value of 500,000, finance rate of 8%, finance period of 90, arrangement fee of 0.5%. The tool returns 12,363.01. You can adjust any input and the result updates as you type — no submit button, no reload. That's the real power here: seeing how sensitive the output is to one or two assumptions.

What moves the number most

The result responds to Transaction Value, Finance Rate % (annual), Finance Period (days), and Arrangement Fee %. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.

The formula behind this

Interest = value × rate × days/365. Fee = value × fee %. Total = interest + fee. APR = (total/value) × (365/days) × 100. Everything the calculator does is shown in the formula box below, so you can check the math against your own spreadsheet if you want.

Using this as a check-in

Re-run this every three months. A single reading tells you where you stand; four readings tell you whether things are improving. The trend matters more than any individual snapshot.

What this doesn't capture

The score is a composite of the inputs you provide. Life context — job security, family obligations, health, housing — doesn't appear in the math but shapes the real picture. Use the number as a prompt, not a verdict.