oboloo Glossary

Discount Payment

oboloo Glossary

Discount Payment

Discount Payment is a special payment agreement that allows businesses to pay their invoices early with a discounted amount. It works by rewarding suppliers who accept early payments with a lower net invoice value, helping both parties to optimize cash flow. Discount Payments are beneficial for the customer because they can extend the terms of payment and enjoy immediate savings on their invoice total, while the supplier benefits from receiving an approved payment faster than expected. With Discount Payment, everyone wins.