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2%, net 10 days

Discussion in 'Business Fundamentals' started by Lawn Lad, Jul 6, 2002.

  1. Lawn Lad

    Lawn Lad Senior Member
    Messages: 407

    Does anyone give a % discount to commercial (and/or residential) customers? Do they expect it?

    At what point do you "cut off" the discount? For instance, we charge finance charges when the account is 30 days old - or the next billing cycle. It's easy to figure to out - if we haven't been paid by the time we generate new statements, the customer is billed a finance charge.

    For discounts, do you accept the discounted pay if the check arrives after the 10th day? Maybe postmarked 10 days. What if it's blatent - and a customer takes the 2%, but they paid in 15 days. How have you handled this?
  2. Ohiosnow

    Ohiosnow Senior Member
    from Ohio
    Messages: 415

    No Discount Here

    You bid the price & they signed a contract & now you want to give them a discount :confused: . All my commerical accounts have a payment DUE date & that's all that matters. I know some will think it's a good idea but if you are good at sending bills on time then they will pay on time :) . Just make sure you have a bill payment plan in your contract.