Settlement Discounts

It is quite common to offer a settlement discount to customers who pay within a certain timescale.  The main reason for offering such a discount is to aid cash flow.  However, do not miss the sales/marketing advantage that this also offers:  Make sure that all your customers are aware that you are offering a settlement discount as part of your marketing, inclusion in your standard terms and conditions and don’t forget to mention it when chasing up payment.

Also,, do not fall into the trap of honouring the settlement discount for those customers who fail to meet the required discount.

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