Not taking advantage of cash discounts may have the same effect as paying a fairly large "interest charge."

Question

Quizplus · Accepted Answer

Cash discounts are typically offered as an incentive to pay a bill or invoice early. If you don't take advantage of the discount and instead pay the full amount at a later date, you are essentially paying extra. This is similar to paying interest on a loan or credit card balance. Therefore, not taking advantage of cash discounts can have the same effect as paying a fairly large "interest charge."

Not Taking Advantage of Cash Discounts May Have the Same