Early payment discount is a simple yet powerful way to shorten your billing cycle at minimal cost. Shortening your billing cycle means better cashflow which will help your business do better in the long run. Read more about early payment discount.
Setting early payment discount is quite simple.
1. Create or edit an existing invoice (this can also be applied to estimates or purchase orders)
2. In the last section of your invoice under ‘Early Payment Discount’ tab enter the discount to be applied and the expiration date for the early payment discount.
3. The resulting invoice would now contain the applied discount.
4. Please note, the discount is sliding downwards on a daily basis, which means that if you applied a 5% discount for a period of 5 days it would behave as follows:
Day 1 – 5%
Day 2 – 4%
Day 3 – 3%
Day 4 – 2%
Day 5 – 1%
Day 6 and onwards – no discount
The visual representation of the early payment discount will appear on your invoice as follows: