What does a company offer To encourage a buyer to pay before the end of the credit period the seller may offer a?

To encourage a buyer to pay before the end of the credit period, a company may offer a cash discount. This incentive reduces the total amount owed if the buyer settles the invoice early, effectively rewarding prompt payment. This practice can improve the seller's cash flow and reduce the risk of bad debts. Additionally, it can strengthen the buyer-seller relationship by fostering timely transactions.