Cost of Extending Payment Terms to Net 120 Days or 2% 30 Days

msswiney

New Member
Joined
May 29, 2007
Messages
4
Hello,

Any help on calculating the difference to bottom line for a customer who will have a bi-weekly invoice totaling $43,000 and what the difference will be if we give them 2% 30 days or extend their payment terms to Net 120 Days?

This customer will also have an additional invoice for $500,000 every other year with the same payment terms.

Thanks,
Michelle
 

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