Thinking about various payment terms for Accounts Payable, do you feel it is always valuable for a company to offer early payment discounts? Should a change in the prime rate (up or down) impact the decision to offer the discount to customers? Why/why not?

Answer rating: 100% (QA)

Offering early payment discounts can be beneficial for a company in some situations but it may not always be valuable depending on the companys specific circumstances and financial objectives Here are ... View the full answer