early payment discount

Prompt Pay Discount Capture: The 2% You're Leaving on the Table Every Time

Prompt pay discounts — "2/10 net 30" offering 2% off if paid within 10 days vs net 30 — are free money for AP teams that actually capture them. But many construction AP functions miss the discount window regularly due to approval delays, process friction, or simply not knowing about the terms. Systematic capture of prompt pay discounts adds meaningful margin — for a mid-sized contractor, the difference between capture and non-capture can be hundreds of thousands of dollars annually.