Cash Discount
/ˈkæʃ ˈdɪskɑːnt/
Definitions
- (n.) A reduction in the price granted by a seller to a buyer for prompt payment of cash or near-cash forms of payment.
The invoice included a 2% cash discount if payment was made within 10 days.
Related terms
See also
Commentary
Cash discounts are distinct from trade discounts; they encourage quick payment and improve cash flow.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.