Quick answer
If a supplier offers a discount for paying early or ordering in bulk, fast funding to pay now can save more than it costs. Compare the discount in dollars with the total cost of short-term funding. With bank statements ready, approval within the hour is common and the supplier can be paid within 24 hours, before the offer expires.
Key points
- Compare the discount in dollars with the total funding cost
- Early-payment and bulk discounts can exceed short-term funding costs
- Approval within the hour means you can meet tight deadlines
- Only buy stock you are confident will sell
Some of the best returns available to a small business come from its own suppliers. An early-payment discount for settling within seven days, a bulk discount for ordering a full pallet or container, or an end-of-line clearance at a fraction of the usual price. When cash is tight, these offers often go begging. Fast funding can turn them into profit.
Do the sums
The test is simple: is the discount, in dollars, bigger than the total cost of funding for the time you need it?
| Item | Example (illustrative) |
|---|---|
| Supplier invoice | $60,000 |
| Discount for paying within 7 days | $1,800 |
| You would otherwise pay in | 45 days |
| Total cost of short-term funding for that period | Compare this figure with the $1,800 |
If the funding costs less than the discount, you are ahead. The cost of delay calculator lets you enter a missed discount and compare it with the total cost of a quote.
Bulk and clearance deals
Bulk discounts carry more variables. Count storage, insurance, handling and the time the stock will take to sell. A deep discount on stock that sits for a year can end up costing more than it saves. Buy what you are confident will move within the term of the funding.
If you would rather talk than read, enquire online or call 07 3106 8922 and a person will walk you through it.
Speed makes it work
Discount offers come with deadlines. With bank statements shared online, approval within the hour is common, and the supplier can be paid directly within 24 hours. For regular early-payment discounts, a line of credit lets you draw and pay each invoice as it arrives, then repay as your customers pay you.
Strengthen the relationship
Suppliers value customers who pay quickly. Consistent early payment can lead to better pricing, priority allocation when stock is short and more flexible terms when you need them. That relationship is worth as much as the discount itself.
A worked example (illustrative)
A hardware store is offered 4% off its monthly account of about $85,000 if paid within 10 days rather than 60. The owner calculates the discount at roughly $3,400 a month and compares it with the cost of drawing on a line of credit for about 50 days. The discount is comfortably larger, so the store pays early every month and keeps the difference.
Keep it disciplined
Only take discounts on purchases you would have made anyway. A discount that tempts you into buying more than you need is not a saving. Review the numbers every few months as your supplier terms and funding costs change.
Documents that speed things up
The fastest approvals happen when this list is ready to send in one reply:
- Supplier invoice and discount terms
- Deadline for the discount
- Your normal payment timing
- Business bank statements
- Photo ID and ABN
Common delays and how to avoid them
Watch for these common speed bumps:
- Calculating the discount but not the funding cost
- Over-buying to chase a bigger discount
- Leaving it until the discount deadline
- Supplier invoices in the wrong business name
The fastest enquiries have one thing in common
Most delays we see trace back to something that changed after the first call: the amount went up, the turnover turned out lower, a second director appeared or the property was in a trust. None of these are deal-breakers. They just cost time when they arrive late. Put the real picture in the form, and the assessment can be done once, properly and quickly.
In a nutshell
- Compare the discount in dollars with the total funding cost
- Early-payment and bulk discounts can exceed short-term funding costs
- Approval within the hour means you can meet tight deadlines
- Only buy stock you are confident will sell
How the 24-hour clock works here
Fast does not mean careless. Every loan still gets a proper look at how the business trades, who owns it and how the money will be repaid. The difference is that we do the looking quickly and in parallel. Bank statements can be read in minutes once they are shared, property loans do not wait on a valuation, and documents are signed electronically. Approval within the hour is common, and funding within 24 hours is possible when every party signs promptly.
What to do next
Put the details in once and let us do the chasing. No credit check to enquire, no spray-and-pray, and a real person on your file. Be as accurate as you can on the form, and we will be as fast as we can in return. Start your enquiry.
Frequently asked questions
How do I know if a supplier discount is worth funding?
Work out the discount in dollars and compare it with the total cost of the funding for the period you need it. If the discount is clearly bigger, it is usually worth it.
Can funding be paid straight to the supplier?
Often, yes, which helps you meet the discount deadline with certainty.
What about bulk discounts on large orders?
Factor in storage, insurance and how long the stock will take to sell. A big discount on stock that sits for a year may not be worth it.
How fast can the supplier be paid?
With bank statements shared online, approval within the hour is common and the supplier can be paid within 24 hours.
Start the clock right here
The same 60-second enquiry, on this page. No credit check to enquire, and a real person picks it up fast.