Inflate the rate to cover the risk. If offering a 10% discount, increase the rate by 15%, then it doesn't matter if they still take the discount. I worked with some companies that would not take invoices/contracts that had penalties for late payments. So, I inflated the rates and offered the discount for payment within 10 days of invoice date.

Booth, nice to see you are still active. Go get them......

-------------- Original message from Booth Martin <booth@xxxxxxxxxxxx>: --------------

I experimented with cash discounts for a decade or so in a business to
business environment. It didn't seem to appreciably effect the the time
to settlement. It just wasn't worth the clerical hassles.

rob@xxxxxxxxx wrote:
We had an AP clerk at one company warn us not to offer them discounts for
paying early. Her company always took the discounts regardless of when
they paid.

Rob Berendt

Booth Martin

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