How is the discount calculated for each bill?
Discounts are calculated dynamically based on your chosen annualized discount rate and the time remaining until the bill's original due date. The earlier you pay, the higher the discount. For example, if you set a 12% annualized rate:
- Bill amount: $10,000
- Days paid early: 30 days
- Bill discount: 1% ($100)
- Total to pay: $9,900
Your supplier receives $9,900 today, and you save $100.