Payables financing is costless during the prompt payment discount period.

Name: Payables financing is costless during the prompt payment discount period.
Brand: Quizplus
Rating: 4.7 (35 reviews)

Question

Quizplus · Accepted Answer

Payables financing involves taking advantage of the prompt payment discount offered by a supplier to pay early and receive a discount. This discount essentially covers the cost of financing and makes it costless during the discount period. However, if the payment is made after the discount period, additional financing costs may apply.

Payables Financing Is Costless During the Prompt Payment Discount Period