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Tidybuoy Tidybuoy is online now
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Join Date: Jun 2003
Location: Fresno, CA
Posts: 7,861
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%
Old 01-23-2018, 09:20 AM
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