The offer to reduce the amount of an invoice, to encourage prompt payment, is called a trade discount.

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The offer to reduce the amount of an invoice to encourage prompt payment is called a cash discount, not a trade discount. A trade discount is a reduction in the listed price of a product or service offered to wholesalers or other buyers in the distribution chain, often based on volume or status as a reseller.

The Offer to Reduce the Amount of an Invoice, to Encourage