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if they remit payment inside 10 days of receipt of bill. In any other case they have to pay the whole rate in 30 days.

 

That is precisely what invoice Factoring does with out supplying the top customer the alternative to take the reduction. There are advantages to taking this procedure. One is that finish purchaser does now not get familiar with the proposal of a reduction. As a result, when a trade now not desires to element its invoices that 2% goes straight to the bottom line.

 

This is a further reason that factoring makes excellent feel. Some firms will insist on taking an offered 2% reduction and pay in 30 days anyway. This entirely destroys the rationale of delivering the discount.

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