In today's challenging economic environment, cash is king. To reduce working capital and improve their Days Payable Outstanding (DPO), buyers are increasingly extending their payment terms while looking for ways to take advantage of discounts offered by their suppliers in exchange for early payment. This focus on early payment discounts creates an opportunity for cash-strapped suppliers to directly offset the effect of the buyers extending payment terms. As a result of being paid early, the supplier can improve cash flow and show an improvement in their Days Sales Outstanding (DSO) - an important overall business metric.
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