The old adage that time is money is true when it comes to paying invoices. Most suppliers are willing to offer a discount on price in exchange for rapid payment. The most common terms are a 2% discount for payment within 10 days or no discount for payment in 30 days. Fast payment does have a cost - the cost of capital. A rule of thumb is if the discount exceeds1.5% with payment in 10 days rather than 45, take the discount.

I like to wait to discuss payment terms until the very end of the negotiation. After you agree to a unit price then introduce the idea of a payment discount. If you do not wait the supplier will likely offset the discount with a higher price!

If you do take the discount you should pay in the agreed timeframe. See the News section of the site for ideas on how to streamline the administrative process so that you can get the invoices paid.