Trade Discount VS Cash Discount

Provided by the seller at the time of purchase to attract customers and increase sales.

Offered at the time when the seller offers payments and is calculated as an additional deduction on the printed invoice.

The sellers are interested in those customers who are interested in buying bulk quantities.

It is offered subject to certain conditions which incentivize the buyer to make a large part of the payment upfront and pay remaining installments as soon as possible.

This is a deduction off the invoice price of goods purchased on credit.

• Cash Discount

• Trade Discount

This is a deduction off the list price of goods purchased.

• Cash Discount

• Trade Discount

This is given to encourage prompt payment.

• Trade Discount

• Cash Discount

This is given to encourage bulk purchases.

• Trade Discount

• Cash Discount

The buyer forfeits the discount if he does not pay within the given period.

• Cash Discount

• Trade Discount

Buyer is entitled to the discount even if he fails to pay within the given period.

• Cash Discount

• Trade Discount