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Cash Discounters Web Directory

Cash discounters generally refer to a strategy that offers an incentive for paying a debt before it is due. Typically, the full amount is reduced by the person or firm offering the cash discount. The discount could be for a small percentage or fixed dollar amount deducted from the total.

Cash discount web directory
Cash discount

For instance, a customer might owe $100 on an invoice for a product or service. The firm offering a cash discount might give the customer 15 percent off the $100 if the invoice is paid 15 days before the due date. The invoice total changes to $85 for the amount due. Offering cash discounts help the customer save and can improve the firm's cash conversion cycle. A cash conversion cycle is the length of time between when a firm invoices customers to when payment is received.

Another type of cash discounter is companies that offer lump sum payouts to people who are receiving monthly payments from a structured settlement. People who consider accessing lump sum payments from a cash discounter should consider the rate charged. In general, a low discount rate equals more in the lump sum payout. Conversely, a high discount rate can significantly reduce the amount received.

Cash discounters that purchase structured settlements usually places a discount on the total amount of the payments a person sells. This means if the person has 36 months left in a 60 month structured settlement payout, the cash discount purchases the 36 months.

Occasionally, service providers will offer customers a cash discount if fees are paid when services are rendered. A good example of this is a dental office that may bill the patient for extensive dental work. Patients who lack dental insurance may receive a discount if they pay on the same day. This reduces the cost and time of billing the patient, mailing billing statements and receiving installments.