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Trade Finance & Supply Chain

LC Financing Cost & Margin Calculator Bangladesh

Compare quotation assumptions without uploading a transaction or registering. All fees are entered in USD; BDT figures use your budget exchange rate.

How to read the result

Initial cash assumes margin and entered fees are paid upfront. The unfinanced purchase portion is shown separately because its payment timing depends on your arrangement. Restricted margin is not deducted from maturity: confirm when the bank releases or applies it. Do not add margin to the purchase cost as if it were a fee.

Formula and limits

Interest = financed principal × annual rate ÷ 100 × days ÷ day-count basis. Fees = LC value × one-time fee percentage ÷ 100 + flat charges + other charges. This is one-period simple interest, not an effective annual rate or a bank quotation. Enter quarterly commission, tax, correspondent charges or supplier premiums only after calculating the actual applicable amount; the tool does not infer them.

Worked example

USD 100,000 financed for 90 days at 6% on a 360-day basis produces USD 1,500 interest. A 0.5% fee and USD 200 flat charges add USD 700. Interest plus entered fees is USD 2,200. A 20% margin ties up USD 20,000 separately.

Compare responsibly

Hold purchase price, financed amount, currency and dates consistent when comparing quotations. Change FX assumptions separately to understand BDT exposure. Read the UPAS vs supplier’s-credit guide.

Privacy

Inputs and up to three comparison scenarios remain in this page’s memory and disappear on reload. No transaction inputs are saved to a server or sent by this tool to analytics or advertising services.