New article about discount and prepayment explaining why this kind of offers is very profitable and how to build it. It also includes an Excel tool allowing to calculate for your business the acceptable discount rates depending on the weighted average cost of capital and the commercial context. For example, it is coherent to offer a high discount rate to a risky customer when it does not make sense with a creditworthiness one if your company has enough cash in hands. |
Date: 12-04-2013 - Author:
Bertrand Mazuir
Comments
Comment this page
Comments are subject of editor's review before publication
Articles on the same topic
Rubric
Set up the payment term
04-23-2024
Payment terms have a direct effect on your business cash flow and on the risk to get unpaid invoices and bad debts. The longer the payment term, the greater the working capital...
Rubric
Down payment and payment in advance
03-18-2024
Get the payment of an order before doing the delivery or the service requested is the easiest way to avoid any risk of default payment. In addition, the effect on your cash flow is...
Rubric
Delegation of payment
03-18-2024
This kind of contract can limit or even cancel the risk of bad debts in case your client is not creditworthy, but his own client is fully reliable. You are paid directly by the client of...