Why Do Companies Offer Cash Discounts?
Companies that aim at making a larger profit from their operations know well it is easier if they handle cash. However, due to the ease of using debit and credit cards, a larger percentage goes to companies that manage this. This is where a cash discount comes in.
What is a cash discount? A cash discount is a lowered upfront fee given to buyers by sellers when they are experiencing a cash flow shortage. It is mainly beneficial to the seller compared to the buyer. This does not mean however you should not enroll in cash discounts as a buyer, it will benefit you as well.…