Early Payment Discounts (EPDs) are a common business practice that provides customers with the opportunity to pay invoices earlier than the due date and receive a discount in the process. From the business’ perspective, providing Early Payment Discounts allows them to receive payments more quickly, giving them access to their cash sooner. This in turn helps to improve cash flow and overall liquidity. The official business definition of Early Payment Discounts is an agreement between a seller and a buyer that enables the buyer to receive a discount for paying for goods or services in accordance with the terms of the contract. In most cases, the discount will be applied if the invoice is paid within a certain period of time, typically within thirty days from the date of the invoice. Early Payment Discounts are typically offered as a percentage of the amount due, and may vary from one supplier to the next. In many cases, the