Weighted Average Payment Term definition

Weighted Average Payment Term means, as of any date of determination, the quotient of (i) the sum of the products obtained by multiplying the Outstanding Balance at the end of the most recently ended calendar month of each Eligible Receivable times the number of days following the billing date thereof in which such Eligible Receivable is required under the related Contract to be paid in full (such number of days, the “Duration”) divided by (ii) the Net Receivables Pool Balance at the end of the most recently ended calendar month; provided, that, solely for purposes of this calculation, all Eligible Receivables with a Duration of (i) less than 30 days shall be deemed to have a Duration of 30 days, (ii) between 30 days and 60 days shall be deemed to have a Duration of 60 days, (iii) between 61 days and 90 days shall be deemed to have a Duration of 90 days and (iv) greater than 90 days shall be deemed to have a Duration of 120 days.

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Weighted Average Payment Term means the average number of days after invoice which the suppliers of the Restaurant Products purchased through Smart Sourcing require for payment by PFS, weighted by the Dollar volumes for the different items of the Restaurant Products and the different required terms for payment. Notwithstanding the foregoing, Smart Sourcing may negotiate payment terms for Restaurant Products purchased by PFS for sale to the Exclusive Restaurants owned by the Customer (not franchised Exclusive Restaurants) which result in a Weighted Average Payment Term for such Restaurant Products below 15 calendar days so long as there is an equivalent reduction in the receivable payment terms for such Exclusive Restaurants to fully compensate PFS for paying earlier than a Weighted Average Payment Term of 15 days. As described in Section 3(b) above, PFS shall be entitled to receive all early pay discounts and such discounts shall not reduce the amount of the Landed Costs. Smart Sourcing shall have the right to negotiate early pay discounts which PFS will receive so long as the Weighted Average Payment Term, after taking into account such discounts, is not less than 15 calendar days as described above. Smart Sourcing agrees that PFS shall have the right to receive a total amount of early pay discounts equal to at least $10,600,000 per year (commencing in 1998), without any reduction in the Weighted Average Payment Term below 15 days. If PFS does not have the right to receive at least $10,600,000 early pay discounts during any calendar year during the term of this Agreement (commencing in 1998) without reducing the Weighted Average Payment Term below 15 days, Smart Sourcing shall pay to PFS the amount of such shortfall within 30 days after the end of such calendar year. In addition, Smart Sourcing may negotiate payment terms which include an interest charge for late payments by PFS to the supplier equal to the lesser of: (i) the prime rate of interest of Citibank N.A. (as published from time to time) plus 2% per annum or (ii) the maximum rate permitted to be charged under applicable State law. 10

Weighted Average Payment Term means the average number of days after invoice which the suppliers of the Restaurant Products purchased through each SCM Party (taken together) require for payment by Seller, weighted by the dollar volumes for the different items of the Restaurant Products and the different required terms for payment. Notwithstanding the foregoing, SCM (and with the written consent of SCM, any other SCM Party) may negotiate payment terms for Restaurant Products purchased by Seller for sale to the Exclusive Restaurants owned by the Buyer (not franchised Exclusive Restaurants) which result in a Weighted Average Payment Term for such Restaurant Products below 15 calendar days so long as there is an equivalent reduction in the receivable payment terms for such Exclusive Restaurants to fully compensate Seller for paying earlier than a Weighted Average Payment Term of 15 days. As described in Section 3(b) above, Seller shall be entitled to receive all early pay discounts and such discounts shall not reduce the amount of the Landed Costs. Any SCM Party shall have the right to negotiate early pay discounts which Seller will receive so long as the Weighted Average Payment Term, after taking into account such discounts, is not less than 15 calendar days as described above. Buyer agrees and shall cause such SCM Party to agree that Seller shall have the right to receive standard vendor prompt pay discounts. In addition, any SCM Party may negotiate payment terms which include an interest charge for late payments by Seller to the supplier equal to the lesser of: (i) the prime rate of interest of Citibank, N.A. (as published from time to time) plus 2 percent per annum or (ii) the maximum rate permitted to be charged under applicable state law.

Examples of Weighted Average Payment Term in a sentence

The payment terms on Promotional items will not be considered in calculating the "Weighted Average Payment Term" as defined in Section 7(a) of this Agreement.
Smart Sourcing shall have the right to negotiate early pay discounts which PFS will receive so long as the Weighted Average Payment Term, after taking into account such discounts, is not less than 15 calendar days as described above.
Smart Sourcing agrees that PFS shall have the right to receive a total amount of early pay discounts equal to at least $10,600,000 per year (commencing in 1998), without any reduction in the Weighted Average Payment Term below 15 days.
For purposes of this Agreement, the term "Weighted Average Payment Term" shall mean the average number of days after invoice which the suppliers of the Restaurant Products purchased through Smart Sourcing require for payment by PFS, weighted by the Dollar volumes for the different items of the Restaurant Products and the different required terms for payment.
If PFS does not have the right to receive at least $10,600,000 early pay discounts during any calendar year during the term of this Agreement (commencing in 1998) without reducing the Weighted Average Payment Term below 15 days, Smart Sourcing shall pay to PFS the amount of such shortfall within 30 days after the end of such calendar year.
The Customer agrees that the "Weighted Average Payment Term" (defined below) for the Restaurant Products purchased during any calendar quarter by PFS and negotiated through Smart Sourcing will be no less than 15 calendar days.

More Definitions of Weighted Average Payment Term

Weighted Average Payment Term means, for any Business Day, the quotient of:

Weighted Average Payment Term means, as of any date the weighted average Maturity Date of the Transferred Receivables (weighted by the relative Outstanding Balances).