cash discount

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Cash discount

An incentive offered to purchasers of a firm's product for payment within a specified time period, such as ten days.

cash discount

a reduction in the total amount of money owed by a customer to a supplier in return for prompt payment. Cash discounts are offered by suppliers as a means of persuading customers to pay for their CREDIT purchases more quickly and thereby improve the supplier's CASH FLOW.

cash discount

see DISCOUNT.