= x $100,000,000 11% = $11,000,000 In example, has failed to two consecutive the this the retailer pay statements of charges by In this case will be granted, regardless of value of due date. no Credit Allowance the the credit retailer's rating. = x Credit Allowance Maximum Credit Allowance Credit Allowance Percentage = x $100,000,000 0 = $0 Example 3 Maximum Credit Allowance – The calculated a Maximum Credit Allowance is by multiplying network provider’s Total by Annual Retailer Charges 25%. For example, if the a was $1,300 Total Annual Retailer Charges of network provider million, its would be $325 Maximum Credit Allowance million. = x Maximum Credit Allowance Total Annual Retailer Charges 25 % = x $1,300,000,000 25% = $325,000,000
= $100,000,000 x 11% = $11,000,000 In this example, the retailer has failed to pay two consecutive statements of charges by the due date. In this case no Credit Allowance will be granted, regardless of the value of the retailer's credit rating. Credit Allowance = Maximum Credit Allowance x Credit Allowance Percentage = $100,000,000 x 0 = $0 Example 3 – Maximum Credit Allowance The Maximum Credit Allowance is calculated by multiplying a network provider’s Total Annual Retailer Charges by 25%. For example, if the Total Annual Retailer Charges of a network provider was $1,300 million, its Maximum Credit Allowance would be $325 million. Maximum Credit Allowance = Total Annual Retailer Charges x 25 % = $1,300,000,000 x 25% = $325,000,000
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