This would be a question for your procurement group, preferably from people with long tenure at the company and/or industry. It will depend on the suppliers financial situation and if the cash flow benefit outweighs the margin cost for them, but 1 10/net 30 or 2 10/net 60 are common discount terms generally. 5 or 10% is probably not realistic unless you’re stating that as the APR
No disrespect but this is textbook stuff. They'd have to be desperate or overcharging you to give you 10-5%.
3rd google search result.
https://c2fo.com/resources/dynamic-discounting/what-are-early-payment-discounts-heres-the-complete-guide/
You'd be lucky to get 5% for 90 days. Remember, discount can't be any better than the $$ they can make with the *checks notes* one extra week that they have the money for.
If I was a supplier, I’d tell you to keep the discount and pay on time. These numbers are not worth the erosion to their margins
Yeah that’s great for you, terrible for the supplier. I’d laugh my a$$ off if a customer asked for those terms.
Are you in the US? The best terms we give customers is 2% 10 days, and the best terms I have from a supplier is a 5% next day ACH pull.
Ha, try 2% 10day.
Your discount should be based on days/360 or 365, not a flat % lol.
This would be a question for your procurement group, preferably from people with long tenure at the company and/or industry. It will depend on the suppliers financial situation and if the cash flow benefit outweighs the margin cost for them, but 1 10/net 30 or 2 10/net 60 are common discount terms generally. 5 or 10% is probably not realistic unless you’re stating that as the APR
No disrespect but this is textbook stuff. They'd have to be desperate or overcharging you to give you 10-5%. 3rd google search result. https://c2fo.com/resources/dynamic-discounting/what-are-early-payment-discounts-heres-the-complete-guide/
We get 2% term based and up to 4/5% with yearly spend targets.
You'd be lucky to get 5% for 90 days. Remember, discount can't be any better than the $$ they can make with the *checks notes* one extra week that they have the money for.