Cash discount

Certain payment terms for purchased goods that involve a discount for immediate payment (an incentive offered by the seller to encourage the buyer to pay within a stipulated time). The formula: “2 percent discount within 10 days, otherwise net within 30 days” means that if the customer does not use the discount for the supplier credit of 30 days, he pays an interest of 2 percent, which corresponds to an annual interest rate of 24 percent. However, if the borrower overdraws by 30 (60) days under these payment terms, he pays only 12 (8) percent for the supplier credit. The utilization of the cash discount is basically dependent on the price of other types of credit. – See discount, markdown, supplier credit, invoice.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/