Discount Agreement
/ˈdɪskaʊnt əˈɡriːmənt/
Definitions
- (n.) A contractual arrangement where one party agrees to sell receivables, invoices, or debts to another party at less than their face value to receive immediate cash.
The company entered into a discount agreement to improve its cash flow by selling its accounts receivable.
Forms
- discount agreement
- discount agreements
Related terms
See also
Commentary
Often used in commercial finance, discount agreements must clearly define the discount rate and payment terms to avoid disputes.
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.