Early payment discount clause

[Contreras]

I would insist on having this clause removed and tell them that you're quite happy with normal 30 day payment terms.

If I was starting out and cashflow was poor, I'd possibly consider it but personally I think it's cheeky - as if you should be so pleased to get paid on time that you would offer a discount. Paying on time should be normal!

Early payment discount is for received payment before time. Statutory interest would be due after the standard term as normal. Lot's of businesses do this and it's not all about cash flow. If you were contracting direct to a client with standard terms of 45/60/90 days and they could be encouraged to pay invoices within 10 days that's a big difference in exposure.

What's cheeky here is the agency tying it in to their own commercial arrangements with the client and apparently without regard to when the contractor is paid.

[TheCyclingProgrammer]

Early payment discount is for received payment before time.

As far as I'm concerned, "early payment" is pretty meaningless. I consider any payment made from the time of receiving the invoice up until the due date as being on time. Anything after the due date is late.

Payment terms should be based on cash flow and credit worthiness. Financial incentives to pay quickly should be strongly resisted as far as I'm concerned.