Tag Archives: trade discounts

Accounts Payable: What is “Playing the floats” technique

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Also known as predicting cash outflow, the technique of playing the floats allows companies to predict the time it takes vendors to receive and process payments as a way to capitalize on company cash. As long as the company operates ethically, it won’t break any laws or get into any financial hot water. Most businesses [...]

Trade Discounts Can Add Up!

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One of the untapped income sources for many companies is the trade discount offered for prompt payments. Many suppliers offer anywhere from a one percent to three percent discount if the invoice is paid within 10 days, as opposed the usual net 30 days and beyond. Use the following equation to predict your trade discount: [...]

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