If a company has the necessary cash available, it almost always makes economic sense to take a purchase discount offered by suppliers.

Question

Quizplus · Accepted Answer

Taking a purchase discount means that the company can pay the supplier less than the original invoice amount, thus saving money. Even if the discount is only a small percentage, over time it can add up and have a positive impact on the company's bottom line.

If a Company Has the Necessary Cash Available, It Almost