early payment discount

1. Early Payment Discount What is early payment discount & how can you benefit from it?

2. Getting customers to pay their bills and liabilities can be basically as troublesome as pulling teeth. Numerous clients put off making a payment as late as possible and for a few special ones you want to send different payment demands after the due date has passed. These brief cash flow issues can now and then influence your future business prospects and affect your business needs working capital, you can have an early payment discount presented by Mynd Fintech to take care of your concern and help in accelerating the payments.

3. WHAT’S AN EARLY PAYMENT DISCOUNT? Early payment discount is a type of trade finance that allows businesses to obtain a discount on supplier or vendor invoices by paying them before the due date. An early payment discount is a price cut offered to customers (buyers) who can receive their purchases if they pay before the due date. The discount can be a specific dollar amount or a percentage of the total cost. Here Mynd Fintech acts as a vendor & helps businesses in obtaining an early payment discount & facilitating it.

4. EARLY PAYMENT DISCOUNT EXAMPLE- A seller/vendor like Mynd Fintech offers its customers a 1% discount in the event that they pay in 10 days rather than the commonplace 30 days. That means Mynd Fintech is offering a 1% discount for getting cash 20 days early, and the customer is saving 1% by paying 20 days early. Accordingly, assuming that a 1,000-rupee receipt is paid in the span of 10 days, the 1,000-rupee commitment will be satisfied in entire for ₹990 as it were. In the event that the purchaser has adequate assets or a promptly accessible credit extension, the 1% early payment discount for paying 20 days early can result in an incredibly appealing annualized pace of around 18%.

5. ADVANTAGES OF EARLY PAYMENT DISCOUNT FOR THE SUPPLIERS FOR THE BUYERS It give the essential advantage of permitting suppliers to be paid sooner, which speeds up cash flow gives additional liquidity and diminishes the requirement for funding. It additionally helps in bringing down the chance of nonpayment or late payment and reduces the risk of bad debt and safeguards your supply chain by giving adequate liquidity which will make the provider's financial position strong on the market. It helps buyers to decrease costs on goods and services and helps in savings. It helps to reinforce the relationship with the supplier. It decreases the risk of getting the supply chain disrupted.

6. CONCLUSION When you add early payment discount terms to your pay cycle, it's a win-win for you and your vendor. Not only does it prevent late payments and strengthen business relationships, but it also helps you build a bigger working capital for business expansion. By using Mynd Fintech’s early payment discount terms, your company can get paid sooner to help improve your bottom line by making the process flexible. Our system not only assists in cash flow problems but also helps a company in avoiding late payments & strengthens business relationships.

7. Thanks! Have Any Questions Related to Early Payment Discount? Call: +91-124-4646000 Email: hello@myndfin.com Website: Myndfin.com