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A customer that historically has always discounted is now paying at or beyond the net terms. We offer terms of 2% 15, net 30 days. Should I be concerned?

Answer: Yes, the question is how concerned – and the answer is that it depends on how far past due the customer gets. Clearly, it makes no financial sense for your customer not to take advantage of the 2% discount unless they have serious cash flow problems. I would certain put this account on your watch list.

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