When asked to compare two incentive discounts, consider:
Remember an incentive discount like “2% - 10 days, net 30” means the following:
So if a question asks to evaluate whether it is better to offer “1% - 45 days, net 60” or “2% - 10 days, net 60” on an invoice for $4,500.00, the answer would be “2% - 10 days, net 60” because even though you receive 2% less instead of 1% less, you collect on your receivables much faster.