Early Payment Discount

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Early Payment Discount

• What is early payment discount how can you
  benefit from it?

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Getting customers to pay their bills and
liabilities can be basically as troublesome as
pulling teeth. Numerous clients put off making a
payment as late as possible and for a few special
ones you want to send different payment demands
after the due date has passed.
These brief cash flow issues can now and then
influence your future business prospects and
affect your business needs working capital, you
can have an early payment discount presented by
Mynd Fintech to take care of your concern and
help in accelerating the payments.
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WHATS AN EARLY PAYMENT DISCOUNT?
Early payment discount is a type of trade finance
that allows businesses to obtain a discount on
supplier or vendor invoices by paying them before
the due date. An early payment discount is a
price cut offered to customers (buyers) who can
receive their purchases if they pay before the
due date. The discount can be a specific dollar
amount or a percentage of the total cost. Here
Mynd Fintech acts as a vendor helps businesses
in obtaining an early payment discount
facilitating it.
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EARLY PAYMENT DISCOUNT EXAMPLE-

• A seller/vendor like Mynd Fintech offers its
  customers a 1 discount in the event that they
  pay in 10 days rather than the commonplace 30
  days. That means Mynd Fintech is offering a 1
  discount for getting cash 20 days early, and the
  customer is saving 1 by paying 20 days early.
  Accordingly, assuming that a 1,000-rupee receipt
  is paid in the span of 10 days, the 1,000-rupee
  commitment will be satisfied in entire for ?990
  as it were. In the event that the purchaser has
  adequate assets or a promptly accessible credit
  extension, the 1 early payment discount for
  paying 20 days early can result in an incredibly
  appealing annualized pace of around 18.

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ADVANTAGES OF EARLY PAYMENT DISCOUNT
FOR THE SUPPLIERS
It give the essential advantage of permitting
suppliers to be paid sooner, which speeds up cash
flow gives additional liquidity and diminishes
the requirement for funding.
It additionally helps in bringing down the chance
of nonpayment or late payment and reduces the
risk of bad debt and safeguards your supply chain
by giving adequate liquidity which will make the
provider's financial position strong on the
market.
FOR THE BUYERS
It helps buyers to decrease costs on goods and
services and helps in savings.
It helps to reinforce the relationship with the
supplier.
It decreases the risk of getting the supply chain
disrupted.
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CONCLUSION

• When you add early payment discount terms to your
  pay cycle, it's a win-win for you and your
  vendor. Not only does it prevent late payments
  and strengthen business relationships, but it
  also helps you build a bigger working capital for
  business expansion.
• By using Mynd Fintechs early payment discount
  terms, your company can get paid sooner to help
  improve your bottom line by making the process
  flexible. Our system not only assists in cash
  flow problems but also helps a company in
  avoiding late payments strengthens business
  relationships.

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Thanks!

• Have Any Questions Related to Early Payment
  Discount?
• Call 91-124-4646000
• Email hello_at_myndfin.com
• Website Myndfin.com