2 min read
Why early-payment discounts are powerful
A 2% discount for paying 30 days early is worth far more than 2% a year once annualised. Financing to capture it can be a genuine profit lever rather than a cost.
Do the comparison properly
Convert the discount to an annual rate and set it against your finance cost using the true-cost-of-borrowing calculator. If the discount wins, taking it with a short facility makes money.
Fund it cleanly
A short working-capital facility bridges the early payment until your own customers pay. Repay it inside the normal working-capital cycle.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online when the numbers work.
Frequently asked questions
Is a 2% early-payment discount really worth borrowing for?
Often yes. Paying 30 days early for 2% annualises to roughly 24% — well above typical short-term finance costs. The maths usually favours taking it.
What's the risk in borrowing to pay suppliers early?
Only that you over-commit cash you need elsewhere. Take the discount when the saving clearly beats the finance cost and you can repay within the trading cycle.
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Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.