In order to encourage customers to pay on time, Edgenta proposes introducing an early settlement discount of 1% for payment within 30 days, while increasing its normal credit period to 45 days. It is expected that, on average, 60% of customers will take the discount and pay within 30 days, 30% of customers will pay within 45 day and 10% of customers will not change their current behavior.

The company has an overdraft facility charging interest of 7% per year.

Edgenta Bhd. uses a working year consisting of 365 days. The industry cash conversion cycle and receivables collection period are 50 days and 45 days respectively.