The official business definition of Early Payment Discount is a financial incentive offered by a seller to encourage a buyer to pay an outstanding invoice before its due date. This discount is usually offered on the condition that the buyer pays the invoice within a specified period of time. This discount is most common in the B2B (business-to-business) sector, where suppliers will offer early payment discounts to their customers as a way to incentivize faster payment. Early payment discounts can be a great way for businesses to improve their cash flow and avoid interest payments. Early payment discounts are typically a percentage of the invoice amount, so the earlier the payment is made, the more money the buyer can save. Early payment discounts may also be offered on a sliding scale, where the discount increases the closer the payment is made to the due date. This can be a great way to encourage buyers to pay in a timely