A company that foregoes the discount when credit terms are 4/15 net 70 is essentially borrowing money from his supplier for an additional

Name: A company that foregoes the discount when credit terms are 4/15 net 70 is essentially borrowing money from his supplier for an additional
Brand: Quizplus
Rating: 4.7 (65 reviews)

Question

Quizplus · Accepted Answer

The company has 70 days to pay the invoice but loses the discount if not paid within 15 days. By not taking the discount, they effectively borrow money for the remaining 55 days (70 - 15).

A Company That Foregoes the Discount When Credit Terms Are