Why should you offer discount for ealier payment to customers?

Tools, tutorials, methods and services

To know how to get paid by your clients

New article about discount and prepayment explaining why this kind of offers is very profitable and how to build it.

It also includes an Excel tool allowing to calculate for your business the acceptable discount rates depending on the weighted average cost of capital and the commercial context.

For example, it is coherent to offer a high discount rate to a risky customer when it does not make sense with a creditworthiness one if your company has enough cash in hands.

Date: 12-04-2013 - Author: Bertrand Mazuir

Comments

Comment this page

Comments are subject of editor's review before publication

Your name

Your email (not published)

Your comment

Do not enter sensitive data

What is the result of 3 8 ?

I want to receive replies by email

Articles on the same topic

Set up the payment term Payment terms have a direct effect on your business cash flow and on the risk to get unpaid invoices and bad debts. The longer the payment term, the greater the working capital...

Down payment and payment in advance Get the payment of an order before doing the delivery or the service requested is the easiest way to avoid any risk of default payment. In addition, the effect on your cash flow is...

Delegation of payment This kind of contract can limit or even cancel the risk of bad debts in case your client is not creditworthy, but his own client is fully reliable. You are paid directly by the client of...