Early Payment Discounts

tl;drEarly payment discounts are terms a vendor offers, for example 2% off if an invoice is paid within ten days instead of thirty, as an incentive for the buyer to settle early.

Capturing them consistently improves cash flow and strengthens supplier relationships, but doing it by hand means someone has to know the terms and the timing for every invoice.

Automated systems can flag every invoice eligible for an early payment discount as soon as it's approved, and weigh the discount against the company's own cash position, so the decision to pay early is made deliberately rather than missed by default.

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