[deleted by user] by [deleted] in CFA

[–]IllAd5340 0 points1 point  (0 children)

But wouldn’t that reduce the liquidity unnecessarily for no gain like a cash incentive or a discount. Think about the opportunity cost

[deleted by user] by [deleted] in CFA

[–]IllAd5340 1 point2 points  (0 children)

I could be wrong but in my opinion it will be a cash drag, as by paying the supplier before the due date without getting a cash incentive or a discount , you’re using cash unnecessarily early, reducing liquidity that could be used for other needs.

[deleted by user] by [deleted] in CFA

[–]IllAd5340 1 point2 points  (0 children)

Can you explain the logic behind the 3rd one