Posted: February 7th, 2023

Hello Marcus, Thank you for the informational post! I do understand from the sel

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Hello Marcus,
Thank you for the informational post! I do understand from the sellers point of view that the 2% discount is helpful to them as well even though they would technically lose out overall profits. This is due to suppliers having to pay upfront for their inventory, meaning they don’t have as much cash available until paid out by their customers. Providing an incentive for companies to pay them quicker allows the supplier to maintain a constant cash flow while also allowing them to maintain inventory for future customers. They could also use that money to invest Suppliers can increase the discount percentage or add other benefits as they’d like to help further incentivize buyers. Suppliers do have to monitor the long term impact of this however, as if there is an economic crisis or that particular sector is having a downturn, it could become probematic to manage.
-Cameron

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