The deferred payment surcharge is the difference between the cash price and the price on terms. It prices the time value of money and inflation expectations into the sale. It is paid when buying on terms from a supplier and absorbed when offering installments to a customer. No terms decision can be made without comparing it against the early-payment discount on the same basis.
In Turkey's high-inflation environment the surcharge is not a rounding item; even a two-month term creates a meaningful gap against the cash price. To decide properly, reduce the early-payment discount and the surcharge to the same period and compare: if cash is available, buy upfront and take the discount; if cash is tight, take the term. On the customer side, whether the surcharge is built into the price on installment sales has to be stated openly; not stating it creates both a trust and a compliance problem.
Surcharge rate = (Deferred price − Cash price) ÷ Cash price × 100
If a purchase priced at 100,000 TL in cash costs 108,000 TL on 60-day terms, the surcharge is 8 percent over two months.
In Turkey's high-inflation environment the surcharge is not a rounding item; even a two-month term creates a meaningful gap against the cash price. To decide properly, reduce the early-payment discount and the surcharge to the same period and compare: if cash is available, buy upfront and take the discount; if cash is …
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