If a dealer has an option to get 5% discount and make his payment for purchases in a day or get 3.5 % discount and pay in 21 days. Which is best for him?

Question

Accepted Answer

The dealer should choose the 5% discount and make payment in a day as it offers a higher discount and immediate payment benefits.

Choosing the 5% discount and making payment in a day results in higher savings for the dealer.
Immediate payment can also help the dealer in managing cash flow and reducing outstanding debts.
If the dealer has enough funds to make the payment in a day, it is advisable to go for the higher discount option.

Accepted Answer

If dealer has his finances sorted and can afford them he should definitely go with 5% discount

If a dealer has an option to get 5% discount and make his payment for purchases in a day or get 3.5 % discount and pay in 21 days. Which is best for him?

Popular interview questions of Territory Sales Executive