Early Payment Discount – When to Offer

Offer a small discount if customers pay before the due date. You get cash sooner.

Common Format

2/10 net 30 = 2% off if paid in 10 days, otherwise full in 30 days.

When It Helps

• Your cash flow – Need money quickly
• Customer has cash – They may pay early for discount
• Large orders – 2% on big amount is meaningful

Calculate

• 2% for 20 days early ≈ 36% annualized benefit to them
• Cost to you: 2% of that sale
• Worth it if your cost of capital or need for cash is high

For Kirana

• More common with B2B / wholesale
• For retail udhar: “Pay in 7 days, 1% off” can work
• Don’t overuse – margin already thin

Stockkeeper tracks due dates so you can offer discount to the right customers. Join the waitlist.