Script:
According to the terms of payment, a customer is eligible for a discount only if the entire invoice is paid upon completion of service. Up-front payment is much more efficient because we don′t have to bill the customer. Also, as soon as we receive payment, it becomes capital. We estimate that up-front payments save us about fifteen percent for each project. This is a significant amount of money for the company. Therefore, it is greatly to our advantage to encourage up-front payment as much as we possibly can.