Yes, in theory it does encourage those who have the money after collecting their receivables as well, 2% l0 days net 30 is a good discount and business practice. But, having had a small business in Michigan for a number of years and trying to collect from local merchants was such a chore, even offering a small discount. I wasn't good at it, I fell for hard luck stories and gave them extra time, not a good idea when two people owning a company have mouths to feed.
I found someone with the attributes in my first post and could get onto to other things like inventory control, sweeping the floors, taking care of a 3 months old baby who came to work with me, etc. etc.
The economy wasn't all that good in the States 27 years ago, even for someone with a good business plan.
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