URGENTLY need help in calculating a new business finance program.

thefinancialnoob

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Apr 24, 2019
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Dear everyone, I owned a hotel business, and has offered a special finance program by Agoda (online travel agent). Details as below:-

Been partner with Agoda for more than 3 years, Agoda charge 17% comission for every room sold by its platform. For example:-

Deluxe King Room $100 - 17% = $ 83
$ 83 is what i got and $ 17 is paid to Agoda as comission.

Recently i was offered a program, Agoda will upfront paying me advanced of $ 260,000 in cash with terms of:-
1. Extra 10% comission stacking with the current 17% which is 27% in total.
2. All the amount sold by Agoda will be used to contra with the $ 260,000 (Example, Deluxe King $ 100 - 27% = $ 73. $ 73 contra to $ 260,000 = $ 259,927). Once the advanced $ 260,000 finished contra, Agoda will send another $ 260,000 in cash to me, repeat.

My question is how much extra comission/interest am i actually paying to Agoda for accepting this 260,000 advanced offer provided with some details to take into count:-
1. It save me 2% credit card merchant fees for charging every Agoda sales before this program, 260,000 is direct transfer and did not go thru merchant machine.
2. I will allocate 200k from the 260k into fixed deposit of 4% interest p.a. The remaining 60k will keep in non interest earning account.
3. Based on my previous business performance, my business is able to fully contra the amount of 260k in 12 to 14 months.
4. The amount of 260k offered by Agoda is based on previous performance which is 250k total sales in 2018 and 240k in 2017 from Agoda platform for a full year.

please assit me in getting the actual extra amount of interest im paying for getting this 260k, as it is almost like getting a cash loan from bank.

Thanks and appreciate.
 
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