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Home > QFINANCE Dictionary > Definition of discount received

Definition of

discount received


amount of customer's price reduction the amount by which the purchaser receives a reduction in price from the seller

discount received - Related Articles
  • How to Use Receivables as Collateral


    Direct sale of accounts receivable is called factoring. A loan from a bank secured or collateralized against accounts receivable is known as a discount, where the borrower draws against a line of credit that is less than the full value of the trade credits. Accounts receivable financing is a

  • Factoring and Invoice Discounting: Working Capital Management Options

    Best Practice

    The client company pays a commission fee for the factoring service to the factor, as well as interest for the period of financing. The factor bears the risk of non-paying customers. The factor buys the receivable at a discount, which ranges from 0.35% to 4%. The interest for factoring is usually 1
    By Irena Jindrichovska

  • Discounted Cash Flow


    Discounted cash flow (DCF) is a way of measuring the net present value (NPV) of future cash flow. This allows companies to express the value of an investment today based on predicted future returns. The idea behind discounted cash flow is that $1 today is worth more than $1 you might receive

  • Best-Practice Working Capital Management: Techniques for Optimizing Inventories, Receivables, and Payables

    Best Practice

    Many companies still underestimate the importance of working capital management as a lever for freeing up cash from inventory, accounts receivable, and accounts payable. By effectively managing these components, companies can sharply reduce their dependence on outside funding and can use
    By Patrick Buchmann, Udo Jung


Definitions of ’discount received’ and meaning of ’discount received’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’discount received’ and other financial terms with our online QFINANCE Financial Dictionary.

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