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Accountants - Effect of Early Payment Discount Terms
I've been searching for a website that will calculate the effect of offering early payment discount terms but have not found any that are easy to understand.
Does anyone have a recommendation?
I hate it when Giant customers (like Costco/WalMart, etc) dictate payment terms.
I have a new customer that wants one of the following - Our normal terms are Net30.
Customer wants either:
Net 60
2%-15, Net 60
1%-30, Net 60
I want to calculate the effects and then adjust my pricing to them to cover theses but I'm not sure how to calculate.
Average Invoice = 150,000, my line of credit interest rate = 3.8%
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