Overview:

• The video delves into the Suppliers Estimated Financing Rate, found in the Ratings and Metrics tab within the Supplier card.

Components of Financing Rate:

• Base Rates: These reflect the rate at which central banks within the supplier's home country charge financial institutions for borrowing money.
• Credit Spread: This factor is influenced by the creditworthiness of the supplier. Higher credit risk results in a higher credit spread, and vice versa.

Financial Dynamics:

• Impact on Cost of Financing: The combined effect of base rates and credit spread determines the Suppliers Estimated Financing Rate, influencing the overall cost of financing for the supplier.

Credit Risk Influence:

• The video emphasizes that the credit risk of the supplier plays a pivotal role in determining both the credit spread and, consequently, the overall supplier's Estimated Financing Rate.

Significance in Payment Term Negotiation:

• Understanding the Suppliers Estimated Financing Rate becomes crucial in the negotiation of payment terms with the supplier, as it directly affects the financial dynamics and risk assessment.

Conclusion:

• The video concludes with gratitude for watching, summarizing the key insights into comprehending and leveraging the Suppliers Estimated Financing Rate within the context of supplier evaluation and negotiation.