What is cash discount? We explain what the term means

When shopping, the term cash discount comes up frequently, and primarily offline. In fact, the cash discount principle has existed for a long time. Our guide explains what's behind it and what the benefits are.

Only winners: cash discount means a discount for buyers and a quick receipt of money by the seller.

Cash discount dates back to a time long before the Internet and has kept its place until today.

What is cash discount and who benefits from it?

Cash discount is fortunately quickly explained:

• Cash discount describes a discount for immediate or very short-term payment. The exact modalities always depend on the merchant.
• The same applies to the amount of the discount, the usual range is from 2 to 5 percent.
• The advantage for the seller is that he gets his money quickly, which is good for liquidity - and therefore often even very important.
• For buyers, the advantage is obvious anyway: you get a discount on the gross price and that is always welcome.

In many discount offers, direct payment is not even necessary; often, for example, a payment term of 14 days is specified. Bei Barzahlung oder mit Kreditkarte erfolgt der Geldtransfer immer direkt, Skonto ist daher vor allem relevant für Zahlmethoden wie den Rechnungskauf.