What might be three benefits of offering such settlement

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Reference no: EM133926375

Problem

STU Sdn. Bhd. (SSB) makes and sells sound equipment to a range of clients. Its main supplier, VWX Sdn. Bhd. (VSB), has never offered discounts for early payment, so SSB has always taken the full 60 days' credit allowed by VSB. However, VSB has recently struggled to collect its debts on time. Following this, a decision has been made to offer customers a 2% discount for all invoices paid within two weeks (14 days) of purchase. And as for SSB, it can invest cash to earn a 12% annual return. Determine whether it is financially viable for SSB to take advantage of the early payment discount. Get the instant assignment help. From VSB's point of view, what might be three benefits of offering such settlement discounts to its customers?

Reference no: EM133926375

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