Discussion 5: Vendor Discounts Includes assessment. Must post first. Vendor discounts for early payment are can be attractive for a firm. Discuss the issues and difficulties that can keep a company...

Vendors play an important role in business operation. They smoothes the business operation by providing regular supply of inventories, other goods and services on time. Even they support the working capital requirement of firm by providing goods and services on credit. Now, for the early payment of their supply, they offer discount to the firm. Such step, however, reduces their realized cash but assures the minimization of bad debt. Firm also enjoy the benefit of less payment. However, before taking advantages of such discount offer, following issues and difficulties should be taken into account -
· Early...