Innovating the method for calculating the effectiveness of trade credit

Innovating the methodology for calculating trade credit effectiveness is essential for enhancing sales, increasing revenue and profits, and improving competitiveness. This study employs qualitative methods to analyze and propose a new approach to evaluating trade credit policies. The proposed method addresses limitations of traditional approaches by incorporating time value of money and practical considerations. The findings provide a more accurate evaluation framework for businesses, supporting decision-making, improving sales performance, and enhancing overall business efficiency.